Rumors are once again circulating that Facebook is on the brink of… total collapse!
Some are speculating that th the demise of Facebook bring down the entire U.S. economy and all the world financial markets. Some on Wall Street are saying it could be worse than the Great Depression. “We may be heading back to 1850,” said one Wall Street trader.
Facebook’s in trouble, that’s what. Now in the crosshairs of public scrutiny, everybody’s taking potshots. And the warnings are just beginning.
Everything from Facebook being “too big to fail or succeed” to a Chicago attorney warning that the stock could “crater” if Facebook can’t grow revenues 41% annually for five years to “sustain its value” to a warning that Facebook’s one of the “black swans” that could eventually bring down the global economy.
Facebook Inc (NASDAQ:FB) stock is down nearly 18% from its initial public offering since it started trading on Nasdaq, and analysts suggest that things can get worse. The social network faced problems with Nasdaq’s handling of the IPO from the very beginning, including delayed launch from a stated 11.05am to 11.30am, and other technical issues. The situation today, however, runs deeper.
After months of hype building up to this IPO, you’re convinced Facebook is your soul mate, that not getting shares in that IPO would leave you devastated, rejected by your true love. And nothing anyone says about the risks will change your mind. That’s the “psychology of denial.”
The Facebook mystique is so powerful today that in our minds Facebook truly is too big to fail. Facebook will never fail. Facebook will just keep growing indefinitely at rates that would remind us of the old dot-com mindset of 1999. Hail, Facebook — you are too big to fail, and nothing will change our minds.
But… we are all wrong. And experts on and off Wall Street are predicting that if Facebook fails, then the whole American economy will collapse and when the American economy collapses then the whole world economy will collapse and will all be living in cardboard boxes… with NO friends.
Here’s what it might look like when Facebook collapses:
Can Facebook be saved somehow, some way?
Yes! Stockholders are looking at getting rid of Mark Zuckerberg and hiring these guys to run the company:
Will the Winklevoss twins save Facebook? Will they save the world?
What do you think?