Our friends on Wall Street are at it again. It must have been like watching a drunk at the casino who thinks things are going to turn around with one more hand. All those rubes lining up with their pocket change to buy a piece of the Facebook. Whatever it was, people were excited enough to buy wildly overvalued shares of a company that was putting out some pretty weird signals. The $1 billion Instagram purchase seemed strange at first but when GM pulled its ads from Facebook only days before the IPO you’d think small-time investors would’ve gotten cold feet.
Maybe some did but there were enough true believers out there to keep things lively. What on the surface appeared to be amateur hour at the Nasdaq may have been a rare look under the hood of a well-oiled machine.
Facebook just made a lot of money for some people and for others it was like they tossed a banana peel on the ground in front of them. You can’t blame people for wanting to get a slice of the action. Times are tough and who’s not tired of trying to turn a buck into gold the old fashioned way? The Facebook IPO sounded like the second coming of the dotcom boom. Like, Facebook was inside the Arab Spring. They just bought the sickest social app on the market. There’s a movie about it. They have C-I-A money. What’s not to like?
The next time you get that feeling while thinking about asteroid mining, just remember the great pump and dump of 2012 and how many people got chewed up in the sucker machine. They’ll be alright though. With Instagrams’ front end, Facebook’s back end, and 900 million active users, Zuckerberg still has a fighting chance of earning the rest of his new stockholders a little return to go with the egg on their face.