Facebook, Inc. (NASDAQ:FB)

CAPS Rating: 2 out of 5

Recs

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Player Avatar socaluser70 (< 20) Submitted: 8/20/2012 3:06:19 PM : Underperform Start Price: $19.92 FB Score: -3.94

With the lockout expiring on employee-owned shares coming up, there will be much more supply than demand which will drive the stock down further. Plus, I don't see any catalysts to monetize all of the eyeballs those Facebook users attract. Once they start trying to generate more direct revenue, we're going to see usage dropoff and accounts go inactive. At a $40 billion market value, I don't see these shares going anywhere but down.

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