Facebook's gain is impatient investors' loss
Facebook Inc's recent bounce from a lackluster debut on the US bourse might have some investors smiling, but not those who chose to bail out early.
A report by news outfit USA Today noted that Facebook's shares had climbed 31% from its debut price of USD38 on May 17 last year. For 2013, the social media giant saw its stocks soar 86% this year alone amid a saturated rally of stocks of other dotcom companies.
Some investors were not largely confident or had missed out the timing to invest after Facebook's debut. When shares of Facebook post-IPO dropped 50% in the first few months, many investors resorted to selling their shares in the company. Peter Thiel had dumped 80% of his holdings on Facebook, or more than 14 million in shares, in August last year.
Interviewing a few of Facebook's former and current investors, the report arrived at a conclusion that although prognosis of an unproven stock on a public listing may be positive, it would still be hard for majority of the investors to make money out of it.