September 6, 2012

Mark Cuban’s Convoluted Logic on Facebook’s Just Right IPO


Mark Cuban’s convoluted logic on Facebook’s “Just Right” IPO.
 
Mark Cuban in a burst of convoluted logic argues that Facebook’s was a just right IPO – the Goldilocks IPO.

Facebook won in the IPO. 
Facebook was able to raise about 10 BILLION DOLLARS in this IPO.
Investors lost money big time.

But per Mark Cuban, investing is not really “investing” *; it is everyone looking to scam others. And, “investors” deserved to lose money. 
That is the way the stock market works. When you sit at the trading terminal you look for the sucker. When you don’t see one, it’s you. 
Facebook employees lost.

Per Mark Cuban, just re-price the options for employees. By this logic, instead of the “investing” charade, why doesn’t Facebook pull money out directly from the investor’s pockets for themselves? 
Andrew did try to make one cogent argument that Facebook faced the risk of employees leaving because their options were underwater.  Apparently Andrew forgot that companies can re-price their options. Problem solved.

All is well with the world.

Earlier, Mark Cuban had different views on investing as mentioned in Mark Cuban on Wall Street Traders.


* And. if you are a HFT investing-algo with an investing timeframe of a few microseconds, this may not apply to you.


Tags: facebook goldilocks ipo, facebook ipo mark cuban, mark cuban convoluted logic