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Despite plenty of ominous signs leading up to Facebook’s initial public offering last month, small-time investors walked eagerly toward their financial doom.

Why? Psychologists think they have an answer.
Larry Cafiero's profile photoNazim Ali's profile photoReSoMe - Relevant Social Media's profile photoMichael McGimpsey's profile photo
Not only that, but FB didn't release the real earnings estimates regarding the increase in mobile use and how they haven't been able to monetize on it. Also, if only they weren't out of the touch with the internet, it's funny how we all knew this would happen..
There were a lot of people who put their money into a group fund and manager used it to buy stock. One example is a group lost $300 million and that money came from the average Joe.
I was thinking about this and I considered hypothetically lets say that the stock did rise and more people invested. Their earnings reports were released after people bought into the IPO, so if more people invested afterwards, where does the money earned on the stock come from? Because it was clear that FB is not earning enough for its valuation.
Interesting thoughts, both in the post and in the comments here. It'll be interesting to watch over the next few months how Facebook will end up, and how they might combat the swarm of bad press they've been getting. We'll see!
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