Pimco's El-Erian: Investors Fell for Facebook Hype
A lot of concern came out after the IPO of Facebook after last Fridays May l8, IPO. The price of FB which was initially at $38.00, fell ll%. That is a lot of money lost for investors (about $11 billion, much much more than what JP Morgan lost two weeks ago on trading of derivatives.
Earlier post from Wall Street daily warned of possible bombing out of FB IPO. (Many did not want to believe analysis)
Many are emphasizing that hard asset plays, energy,, solid business plan (with clear revenue cost picture are the best investment) However, FB does not have asset, only plenty of users, lot of popularity and hype. That is not expected to be solid revenue, and price stock at Wall St.
The joke now is whether MZ will join th board of JP Morgan.?
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