Facebook Soars to $75

Shares of Facebook ($FB) had a very good day thanks to a strong earnings report. The social networking site didn’t just beat earnings, they got German soccer on them. FB closed at $74.98 today which gives them a market value of $192 billion.

It was just a little over two years ago that everyone laughed at Facebook’s IPO. The underwriting price was $38 per share which was considered greedy. The stock soon dropped below $18 per share.

I guess you can say it’s recovered.

So is Facebook a good buy?

I’ve said no, and I still say no. Yes, I realize the market has gone against me, but I don’t care. If I can’t rationalize a good price, then I’ll leave it be.

Facebook still seems wildly overvalued to me. Don’t confuse that with a prediction that FB will crash. It just means I’m steering clear.


Posted by on July 24th, 2014 at 4:36 pm

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