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Will be fascinating to watch this one. The shares started yesteday at $38 and rose with a flourish but speculators soon took their early profits and by the end of trading the shares were valued at just a tad over $38..back where they started. They are now worth $38 and a few cents.
The share price of $38 was very high to begin with, valueing the business in stratospheric terms...but a big but remains as to how well they will perform over the long term when we have a company that manufactures nothing at all. It is rather like investing in the prevailing mood, the mood of the moment.
It has emerged overnight that one of the biggest winners in the crazy prices is Bono, Irish rock geezer, he invested in Zuckerberg early on and now it seems he has an extra $1BILLION dollars in his bank account today. Yes thats right...a billion!!
The figures are crazy so one has to have a double blink to check that it really says a Billion! he now catapults himself into being the richest musician ever...at a stroke. Well there you are.
Yes harking back to the dotcom revolution and inevitable crash...I remember all too well...remember the mad scramble for lastminute.com shares, a fevered frenzy hit the markets, everybody wanted in...but today they are just another website among thousands and thousands of websites. I dont know if that particular website ever made any money, but the founders did at flotation.
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