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Facebook stock is down nearly 26 per cent since its IPO and is off 8.55 per cent today.Ahead of its IPO, Gary Shilling told Business Insider he thought Facebook was just a fad and that he would be surprised if its stock traded above its IPO price.
In an interview with Bloomberg TV today, Shilling reiterated the idea that the hype around Facebook was similar to the dot com hysteria referencing companies like Pets.com:
“I’m not sure it shouldn’t be shorted. I think that’s the end of social media. It reminds me very much of the late ’90s with the dot com boom.
You remember the socks, the puppet, the hand puppet [referring to Pets.com]? I don’t know what the equivalent is for Facebook mascot or whatever, but you’d better get out your sock puppets if you are a Facebook holder. Look at what happened to those companies.”
Shilling said in general tech stocks have a “split-personality” and that the technology companies that promote productivity to cut costs are attractive. He said he is suspicious of hardware and companies in the consumer area.
Here’s our interview with Shilling the day before Facebook’s IPO.
Produced by Kamelia Angelova & Robert Libetti