If You Bought Facebook Stock a Month Ago, You're Up 13% (But So What?)

The stock moves up and down, the company remains.

facebookprice_615.jpg

Because everyone was gleefully jumping on Facebook's grave as it slid 17 percent during its first month of trading, I just wanted to point out that the company's share price has been doing well.

This is not to prove that somehow Facebook's fortunes have changed a ton since the stock debuted. It's more to say that following the twitches of any company in the algorithmic froth of the equity markets is a recipe for getting embarrassed.

All those tough arguments about Facebook's problems are still relevant even if the stock is going up. All the boosterish arguments about Facebook's potential still could be realized even if the stock dives again.

I think appealing to recent share price moves is practically an appeal to authority, where the 'expert' is actually the stock market. The assumption built into that idea is that the market is evaluating companies on the same basis as users of or advertisers on Facebook. And they're not.

Presented by

The Man Who Owns 40,000 Video Games

A short documentary about an Austrian gamer with an uncommon obsession

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

The 86-Year-Old Farmer Who Won't Quit

A filmmaker returns to his hometown to profile the patriarch of a family farm

Video

Riding Unicycles in a Cave

"If you fall down and break your leg, there's no way out."

Video

Carrot: A Pitch-Perfect Satire of Tech

"It's not just a vegetable. It's what a vegetable should be."

Video

An Ingenious 360-Degree Time-Lapse

Watch the world become a cartoonishly small playground

Video

The Benefits of Living Alone on a Mountain

"You really have to love solitary time by yourself."

More in Technology

Just In