Before Facebook IPO, GM said it would pull out of Facebook ads, and Facebook acknowledged that nearly half of its advertisers considered this site experimental, indicating that advertisers are skepticism.

And underwriters set the price on the top side of $28-38 range. Insiders would sell 53% more shares in the IPO.

And what’s the biggest problem?  The price-to-earnings ratio is around 100 but Facebook even doesn’t have a clear long-term prospects!

Apple and Google all have solid business model. Apple has higher Year-on-Year growth regarding revenue and profit; Google’s revenue are much more than Facebook. But Apple’s P/E ratio is only around 13 and Google’s is only around 18.

When we consider that Facebook reported on April 23 its growth had stopped and revenue fell 6% in the 1^st quarter, things are just getting worse. Shouldn’t we get warned before this IPO hype and stay away from Facebook shares?

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