[foolinator]

FB only released not even close to 1/2 of their stock. The investors are still stock rich and won't sell off their shares yet. If they did, the price would tank to less than $20.

The investors will cash out, but they'll gradually release the stock to the public.

The problem is that the sheer number of shares that need to be bought won't have enough humans in our population to buy it at the price. So you're going to see this stock gradually tank as investors dump their shares into the public.

It's really a legal ponzi scheme - Facebook only makes less than 1B in real revenue and their cap is riding at 90B and falling.

[dave1619]

You mean 1B in profit? FB makes 4b/yr in revenue and growing. It's just not growing fast enough to justify the market cap.

[duaneb]

The market cap is for potential, not reality. It's a gamble, but IPO market caps are never about reality - they're always about getting money.

[socratease]

Plain English. Nice job.