Not that many people asked me, but I felt that the Facebook IPO was a bad idea from the beginning. Mrs. Beagle can attest to the fact that I was never excited about. She asked if I thought it would do well.
My answer was clear: No.
After the initial price and number of shares was released the evening prior to the IPO, I had to do a double take. Not only would this not go well, I thought, but this was a disaster in the making.
Of course, I really didn’t define disaster very well, because after an initial offering price of $38, I thought $25 would be a disastrous level, and of course it has gone well below that, touching below $19 its lowest point so far. That’s half of it’s IPO value gone.
Here are the reasons I never felt that Facebook was a good buy, and why I still don’t to this day, even at what many would consider ‘depressed’ levels.