Some folks in California were hoping that Facebook would usher in a new dot-com stock boom to northern California’s Silicon Valley and surrounding region (Remember the late 90’s?). A few days of trading out from the Facebook IPO and it appears this will not be the case. The talk of a sudden rush of new State tax revenues sparked by a new social media prosperity looks like a very, very long shot.
The entire situation is sad. Years after increasing anticipation about Facebook’s IPO, the stock fell flat and then started to roll down the hill. California, caught between a fiscal rock and hard place, saw a glimmer of hope in this heavily anticipated IPO and now realizes this opportunity is gone.
If the loss of public confidence in government and our financial system was not bad enough, we now have the most publicized IPO in recent memory, if not in history, look as if it was set up by some shady Chicago mobsters from 60+ years ago.
Rather than Facebook being the goose that laid the golden egg, it looks as if Facebook is the goose that laid the rotten egg. I suppose this could be chalked up as an example of why I like to tell people looking for investment advice to invest in companies like Pepsi and Phillip Morris…