Featured Articles

Nvidia GTX 980 reviewed

Nvidia GTX 980 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Nvidia adjusts GTX 980 and GTX 970 pricing

Nvidia adjusts GTX 980 and GTX 970 pricing

It appears that Nvidia has been feeling the pulse of the market and took some note from comments regarding the original…

More...
iPhone 6 and 6 Plus reviews are up and they are good

iPhone 6 and 6 Plus reviews are up and they are good

Apple is dancing the same dance year after year. It releases the iPhone and two days before they start shipping it…

More...
Amazon announces three new tablets

Amazon announces three new tablets

Amazon has just released three new tablets starting with the $99 priced 6-inch Kindle Fire HD6. This is a 6-inch tablet…

More...
PowerColor TurboDuo R9 285 reviewed

PowerColor TurboDuo R9 285 reviewed

Today we will take a look at the PowerColor TurboDuo Radeon R9 285. The card is based on AMD’s new…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Monday, 03 September 2012 09:42

Facebook written down by analysts

Written by Nick Farrell



Wall Street admits Fudzilla was right

The cocaine nose jobs of Wall Street have finally had to admit that Fudzilla was right all along and that Facebook shares are going to fall a long way.

Shares of Facebook fell 4.5 percent to a new low after brokerages cut their price targets on the company's shares. They said that the price is only being kept up by lock in rules which prevent people selling their stock as they would like. Early investors got the green light to sell Facebook shares for the first time on August 16, sending its stock down 6.3 percent and prompting price target cuts.

But things will get worse. More than 243 million shares will become available for trading from mid-October, with November 14 being the big day when more than 1.2 billion shares will enter the market. At the moment there are only 628 million shares floating in the market.

BMO Capital Markets analysts said in a note that after all the share lock-ins are removed, then shareholders will start to look at the company numbers. It is only then that they will realise that they paid more than ten times what the company earns and share prices will still further. However it is worth pointing out that they do not believe that the the share price will fall as low as we do. We have been predicting that they will settle at around $13 each every since the IPO.

BofA Merrill Lynch, an underwriter to the IPO, cut its price target by $12 to $23. The shares fell to $18.23 on the Nasdaq on Friday amid heavy trading.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments