The Facebook investment bubble is apparently too inflated for some investors. Owners of close to $1 billion in Facebook stock are slashing their asking price as they push toward the exits, sources tell Reuters.
After initially asking for a price that valued Facebook at $90 billion, the investors are now only seeking a valuation of $70 billion, several sources told the newswire. The cold-footed owners are apparently worried that the social network is now insanely overvalued. "By the time T. Rowe Price is investing, you know it's too late," a hedge fund manager is quoted saying.
An influx of dumb money might explain why Facebook has traded at an $80 billion valuation this month, just three months after it was deemed worth $50 billion by Goldman Sachs and unnamed Russian investors. Of course, if anyone can take the exploitation of private user information to unimaginably profitable extremes, it's Facebook's serially unscrupulous CEO Mark Zuckerberg. Have a little faith in unchecked mischief, tech investors!
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