Today's Coming Crisis Movie

Sunday, May 20, 2012

Brian Wieser, an analyst at Pivotal Research Group in New York, warned his clients against buying Facebook shares, he claims were implausibly priced

One day after Facebook rolled out its much-anticipated IPO, some less-than-enthused analysts are already warning their clients against buying the social media site’s shares.

Brian Wieser, an analyst at Pivotal Research Group in New York, said that Facebook’s shares were implausibly priced, leading him to put a ‘sell’ rating on the stock.

Facebook’s less-than-stellar debut saw its shares end the day on Friday just 23 cents, or 0.6 per cent, higher than its initial price, at $38.23, valuing the company at $104.2billion - even though it only made $3.7billion last year.

The shares opened up 11 per cent at a respectable price of $42.05 in the morning, and jumped as high as $45 at one point, only to fizzle out after initial technical difficulties delayed the start of the trading by about two hours.

‘While we like the company, we’re troubled by investors’ perception of the risks,’ Weiser told the Sunday Telegraph. ‘It’s priced for perfection and that’s clearly implausible.’ Read More