Also in this playlist...
This transcript is automatically generated
For a brief time maybe not -- -- -- -- FaceBook might wanna change his name do in your FaceBook.
And I suspect the reality is -- -- and the stock to get going up will face -- pressure of real problems that even now.
Many dots so if you connected that is what happens in bubbles -- friends.
That with the FaceBook flashback new warning investors right here on this show only a week later it looks like he's right already.
-- collapsing around 16% since FaceBook debut last Friday lots of selling.
And marketing expert Jay the jet -- has -- says.
Nobody's buying because they don't want to bind to Mark Zuckerberg is that what this is all about now Mark Zuckerberg who.
Just two weeks ago on a road show have the paparazzi even got a little rock star he's gone from rocks or rock bottom it is doing.
Well I -- Charles you're exactly right W but the problem was he's dressed up and -- -- around it and you don't wanna put your money in opinion bacon and given to a guided stressed enough but I'm sorry it just not something Libby wanted to and it's coming down to a fundamental issue around trust and I think that's what they're seeing here.
I mean these guys have lower ratings of approval ratings then the president of United States.
41% of the people were actually saying that they don't even -- for the long term investment 46% of the -- saying that they wouldn't see the company survive long term.
Most people are sitting there saying that they don't trust him with the personal information they don't click on the ads and they're not gonna buy a product or service these guys got a basic trust issue and it's all comes down to leadership and it always has.
But just very good here's the thing now if this stock if they wanna IPO this -- 45 it opened at 32.
Close at forty what we have a different conversation right now.
I think we'll let out a little bit of a different conversation but not really I think overall I've asked life you know my FaceBook fans I've asked my Twitter followers you know what was the big thing and they resented two things one they really have an issue around the privacy.
And I've said from the beginning and I think -- been spot on about guessing about this.
Or at least predicting it is that that people don't fundamentally trust people who Willy -- change these kinds of things and -- an issue for people and so they're not about -- put their money in a company that's going to be doing this.
In I don't think people -- body into the valuation of the company come on the gonna do five billion dollars this year and yet you know a hundred times net earnings I heard this over and over and over on FaceBook today.
Right now here's a thing though -- there's a difference between.
The professionals who question numbers that say they just can connect the dots.
And maybe blow -- large part of that 900 million FaceBook users who just sort of said I like the product I think it's gonna work because I gotta tell you something.
I ran into a whole bunch of people like that of course they've been burned but they still now they believe maybe they have no choice.
Well I I think this is a real good case where users don't equate to investors I think that's an important thing for us to remember it's great for the numbers it's great for the -- it's great to get the clicks it's great for advertisers but it's not really good for investors I think a lot of people said.
Look I've been burned before on these IPOs and I'm gonna wait and see and that's what they -- indeed done and in this case they were right.
Not a got the go go brought an adult supervision until they felt that maybe they can does sort of do it on or around.
And in the looks like that worked out pretty good -- they just scenario in your mind change a little bit of FaceBook -- Zuckerberg say you know what -- maybe this is going to be tougher than I thought maybe it takes more than being cool wearing the ability to to be -- up publicly traded company.
Well I I'd like to say for all the gray hair people out there that has been there's a need for some gray -- here there's need for some sage advice in order to be able to put your trust in the company that you want to invest and I I can't get a enough of this in -- -- saying.
It's important for them to gain trust -- their customers.
They've yet to put the customer centric they talk -- -- that and I love FaceBook.
I advertise on FaceBook I use it to push my books I use -- to push my clients.
And I love that aspect of it I don't know from let you know giving all my life savings to -- what -- -- do that I think they've got to bring up that trust they've got to get higher ratings in the president of the United States before people are gonna wanna put money into it.
By -- -- -- Jeff I think what happened last Friday was the personification agreed though while I'm not against -- I think the guys at Silicon Valley greedy and phony.
And that's not a good equation thanks a lot we really appreciate your expertise have a great holiday weekend thanks for being my friend.
Exactly got -- -- veterans of.
Filter by section