As the Facebook IPO launched today, with the share price trading between $38 and $42 in the first few hours on the stock market.
While the app market is booming, some fear that we are nearing another tech bubble. Every week we will keep track of tech bubble predictions as we cover this space. Today’s feature comes from The Huffington Post business section, where they are keeping a “Tech Bubble Death Watch” over the industry.
What do you think? The post worried about the future of Facebook: “Its revenue growth is slowing. It hasn’t quite figured out how this whole “cell phone” thing works yet. Advertisers aren’t too sure they can make money buying ads on Facebook, the New York Times writes. One, General Motors, has already pulled its ads. Insiders will be dumping shares in an unusually big way at the IPO. Some 57 percent of the shares that will be available to the public will come from investors who bought the company early and are cashing in on the IPO, writes the Wall Street Journal — a high percentage for any IPO, particularly for a tech IPO.”