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Comment by taude | Hacker News Reader

I think the fact that FB was over-priced and criminally IPO'd at ridiculous valuations that aren't living up to the hype (in the near run) are more to blame than anything MZ is doing in particular. As has been said, FB is a fantastic 5 billion dollar company. The sooner they painfully get there, the sooner they can start building...

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I've submitted a Forbes article a couple of days before the IPO - http://news.ycombinator.com/item?id=4396500

Basically, if you bought a company with a P/E of 90 and decreasing revenue (it had dropped 6% in the quarter) then you shouldn't be playing with other people's money. Everyone knew it was a massive risk.

According to Google Finance, 14% of FB's outstanding shares are institutionally owned. I think the vast majority of the pension funds got the message.

You are right, if they had not over excitedly hyped themselves as a £100 billion company, this expectations won't be there. I believe they will do well to downgrade those expectations to that of a $5 - 20 billion company in the short term. In the near future (10 years), we never can tell as they could end up a $100 billion company. For now they won't be able to live keep up with the earning expectations of a $100 billion company.

The people complaining here are often the same people who BOUGHT the shares at the ridiculous IPO valuation. For a few hours, the market average seemed to think the IPO prices was too low. MZ didn't force anyone to buy shares at this price.

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