Mark Cuban Admits He Was Wrong About Facebook

He took a financial beating and is selling off all of his Facebook shares

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Mark Cuban Admits He Was Wrong About Facebook
[ Business]

Mark Cuban, who has been a steadfast supporter of Facebook throughout the IPO process, and an investor who purchased 150,000 shares of the company, is coming forward today to say he was wrong about the company.

He has decided to sell off his huge collection of Facebook shares and is now saying it just isn’t a good investment. Ouch! That has to hurt Facebook in the eyes of investors.

Just this morning I wrote an article where Cuban offered his insight on how Facebook has what it takes to overcome the challenges ahead to become a valuable investment. Now he’s saying it’s best to get out when the gettin’ is good.

Essentially, Cuban says Facebook just issued too many shares of stock and in the process made themselves a lot less valuable. If they would have spread themselves thin, the market for Facebook shares would look a lot different today.

Financial guru Mark Cuban comments on his decision to sell off his shares of Facebook:

“I already sold it, I took my hit, my thesis was wrong. I thought we would get a quick bounce just about the excitement about the stock. I was wrong, and when you are wrong you don’t wait, you just get out. So I took a beating and left,”

“I mean if you look at other companies like LinkedIn, they issued 8.4 million shares and the stock skyrocketed. If Facebook would have come out with 8.4 million shares, instead of 421 million, the stock would be at about $200 right now. So it was just the circumstances that led to me getting in and out,”

He also admits it’s not just Facebook, that everybody is dealing with the same problems; how to monetize advertising? Also, he believes there will be be an increase in monetizing mobile, but it’s a challenge every internet company will have to face.

The good news for Facebook and their investors is that stock climbed to over $32 today on the Nasdaq. In fact, shares of the company have rose 20% since their $25.52 low on June 6th. We’ll see what happens.

Mark Cuban Admits He Was Wrong About Facebook
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  • http://AutomotiveDigitalMarketing.com Ralph Paglia

    Mark is simply stating what many others know but won’t talk about… The Facebook IPO was vastly oversold. For myself, I wa waiting to buy at $22 a share, but that may never happen. I wish I would have jumped in at $26.

  • John D

    Lots of people around the world expose their lives on facebook, dream come true for spooks and crooks behind them who want to control the world.

    There is nothing unexpected in facebook IPO. After about 1 year or so majority floating stock of facebook will be closely held by unknown “investment” companies which will trade among themselves to create a semblance of market.

    It is time to end the fictional reserve banking system, which makes this possible.

    • http://cass-hacks.com Craig

      I don’t know how your initial premise leads to your second but as far as I am concerned, your second stands on its own.

      Just as Fanny Mae and Freddy Mac had as a policy, some would say forced to have as a policy to provide loans to those who obviously couldn’t afford them, the Fed’s policy is to increase the national debt as much as possible so that the principle is practically meaningless considering it would take generations to pay it off, if even possible.

  • http://www.LAokay.com Steve G

    For a guy who seems to be spot on for valuating a company (like he does on Shark Tank) he really seemed to jump in on the hype and invest in a company stock that was valued more than the company was worth.

  • http://atehno.com Atehno.com

    First of all, FB and his advisers offered too many shares without any vision how to make a revenue, every serious investor must ask Top managers of FB, what is your main source of revenues? FB is a global trend, but Google for example has more sources, and very clean picture how to sell his different products on different markets ,to different customers.

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