Is Facebook 2012’s lastminute.com?

Posted on

In March 2000 lastminute.com was the last big IPO in the UK before the stock market crashed. Its share price over the next year went like this:

Facebook has now gone from $38 to $29 in a week or so after its IPO.

Is it the portent of a crash to come? It seems these things have to be preceded by one last final puff of the balloon before it bursts.

I remain convinced that the stock market is heavily overvalued on the basis of, in this case not hysteria but cash that has nothing productive to do.

Let's wait and see.