April 9, 2013
Facebook’s Home The social media giant Facebook Inc. recently unveiled the launch of its apps bunch called “Home” Android operating system. Explaining the features, CEO Mark Zuckerberg […]
March 21, 2013
Social Networking for Companies Of late, there has been much hoopla around the world about the increasing use of web for the development of the business. […]
January 28, 2013
Google vs. Facebook Year 2006 saw a remarkable moment for the search engine giant Google Inc. The word “Google” was added to the Oxford English Dictionary […]
December 2, 2012
Corporation A corporation is by far the most complex form of business entity which exists. It requires several forms for the purpose of filing and getting […]
July 18, 2012
Overpopulation and Increased Lifespan This current day situation is taking an increasing toll on people graduating from colleges in the West. There are enough statistics to […]
May 25, 2012
Structural Unemployment has become a big problem in developed countries where middle class jobs are being permanently destroyed. The advent of modern communications and technology has […]
May 21, 2012
Facebook overvaluation proves itself with underwriters left holding shares worth billions of dollars
There is no disputing the fact of Facebook dominance in social media but its model of making money is far from proved to give it such a huge market value . The underwriters of the company are said to have massive amounts of shares worth billions which they have bought to hold the company's stock price above the IPO price of $38. The trading was marked by a number of glitches which is now being investigated by SEC. This has become a regular occurence reducing trust in the US capital market systems . A lot of the future earnings power is already built into the stock price of the company at $100 billion. It will take a lot of effort to get to the earnings level to justify the market price . In the fast changing technology landscape that is a huge risk . 3 years ago nobody would have questioned the dominance of Nokia and RIMM in the mobile space . But now these companies are fighting for survival. Stock picking is a game of probabilities and in the case of Facebook the current stock price does not justify the risk in buying it.
May 22, 2010
Pakistan started by banning Facebook as one of the pages had a cartoon drawing competition of one of Islam’s revered figures. A group of lawyers petitioned […]