Facebook, reaching a 52-week low of $17.55 on September 4 and then coming back up with a stock hike to 74% to finally close at $30.59 on Wednesday, may have lost investors interest by keeping silence about any upcoming tech offering.
The Wall Street Journal writes that investors have moved on and all eyes are looking for the next big thing in the tech world.
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It is true that buying Facebook Inc (NASDAQ:FB) shares was one of the best investment moves to make in the late summer of 2012, when investors were worried about insider share lock-up expiration, and a lack of communication from Facebook executives. Entrepreneurs and investors , however, do not seem much interested in the social networking giant now, they are looking out for the next viral platform in the social networking world.
Wall street writes that investors suspected that “insiders” at Facebook Inc (NASDAQ:FB) were actually looking to cash out before the company experienced a crash shook their confidence altogether.
The fact that Wall Street doesn’t see much of a sustained hype about anything new in Silicon Valley, it has now shifted its eyes to Twitter, where nothing new in terms of tech offering has happened for seven years.
Even when the social networking giant has crossed back up over $30 for the first time since its disastrous initial public offering, the problem in its valuation is the dwindling opinions of analysts at Wall Street.
Analysts also believe that after the world’s most hyped IPO turned out to be a disaster, most investors are reconsidering their decision about Facebook Inc (NASDAQ:FB) shares.
Expecting another peak of a tech bubble in this year, analysts now look at Twitter to come up with something genuinely new and interesting.