| Kippreport.com

Facebook’s fall from fortune

May 23, 2012 2:44 by Eva Fernandes

The ominous music which played as Mark Zuckerberg, one of the youngest billionaires in the world, rang the NASDAQ bell as Facebook debuted on the stock market, should have been a sign of the rather sour things to come.

For months now, the ‘analysts’ have been upping the already grossly inflated value of Facebook. The company is worth $50 billion, we heard last year; that number kept rising till it reached $100 billion earlier this year. $100 billion? To quote Stewart from Family guy:

Does over valued even to begin describe these ‘forecasts’? Kipp has been telling right about anyone who will listen to us of the horrors of the larger than life overvaluations of tech giants like Groupon, Twitter and Facebook. After all, does the dotcom bubble ring a bell?

Which is why, we are not terribly surprised that company has only raised $16 billion of the $104 billion it was valued at. After trading on Monday, share prices was at a miserable $33.01-but that is not all, rumor has it Morgan Stanley has bought shares on Friday to keep the stock price from falling. And if this wasn’t enough car maker General Motors has withdrawn its $10 million advertising budget from Facebook. Big whoop!

And though, things aren’t going to rosy to the one time darling of the internet, Facebook’s prospects aren’t looking half as bad here in the Middle East. Kipp heard the company will be opening an office here in Dubai Internet City, sometime next week. Only time will tell how the techie over valued company will fare here in Dubai, but Kipp is very excited about this Middle Eastern development. We’ll keep you informed.