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Facebook IPO and Apple's lost $100 Billion!

Finally Facebook's IPO is here. One of the most hyped IPO (and it deserves all the hype it received) is finally here valuing Facebook at around $104 Billion - more than Cisco or Amazon as standalone or Dell/HP combined. Only time would tell if Facebook as company can grow into this valuation or is this top of its valuation! I am sure tomorrow's trading would be all about FB. I won't be surprised to see it pop over $50 at open. Interesting as I have predicted sometime back, savvy investors were taking profits out from Apple for investing in Facebook. Is it coincidental that Apple lost almost $100 Billion valuation from it's high - almost exactly same as Facebook valuation! After all stock market is all about capital moving from one company to another company. In late 1990s Yahoo/Ebay/Amzn/CSCO/MSFT were dominating stock market valuations. All the valuation moved to Google/Apple and now Facebook. It's just matter of time when capital moves from these companies to some new kids on block. That's how capitalism work (and should work). It's just sad to see 25-30 thousands of hard working employees would be losing jobs at HP when 2-3 thousand new millionaires are created in valley. And that's other not-so-good side of capitalism!
As expected fractured election results and post-election not-successful drama of government formation in Greece rattled markets across the world reminding people of 2008. Jun elections would be key for all of Europe, world and could impact even elections in USA. Who would have thought that a small country like Greece would have so profound impact on world. Well - those are the side-effects of capitalism.
So on this eve of Facebook IPO, good luck if you are planning to participate in this historic IPO!

/Shyam

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