

Facebook: Smells Like Enron - spacestronaut
http://www.forbes.com/sites/thestreet/2012/06/08/facebook-smells-like-enron/

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vicngtor
Enron hid their massive debt to generate a positive cash flow. They were not
sustainable towards the end.

Facebook, however, is actually generating value and income.

Comparing Facebook to Enron is essentially comparing apple to oranges

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sek
Did you read the article?

He talks about Wall Street screwing naive investors with a price that is not
justified. Everybody was talking about Facebook is like Google and until short
before the IPO they squeezed every bit of revenue out of It to mimic
exponential growth. Short before the IPO the revenue was sinking because they
overdid it.

Facebook is not as stupid to do something illegal, but they will generate a
new phase of distrust like Enron did. This thing was planned for a long time,
Facebook didn't use it's full advertising capabilities until short before the
IPO. 16Billion was just to greedy and too much, even NASDAQ couldn't handle
it. Look at the Google IPO, Google knew how good they were and they did
everything in the beginning not to sell under price.

Edit: I got downvoted for predicting exactly that. Facebook didn't do
something obviously illegal, but the lawsuits are coming.
<http://news.ycombinator.com/item?id=3981888>

