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Monday, May 21, 2012

Is the Facebook bubble ready to burst?

According to the Sunday Telegraph newspaper yesterday "Morgan Stanley, Facebook’s lead financial adviser, ended the day with 162m shares, worth $6.16bn. Other banks including JP Morgan and Goldman Sachs also bought shares, ending the day with $3.2bn and $2.4bn holdings respectively" which is kind of worrying when you step back and realise that Wall Street were propping up the share prices on the much hyped first day of trading. Indeed, as a result of that $100 billion Facebook valuation, there is now much talk of another tech bubble and whether or not it's about to burst.
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Co-founder of IT Security Thing Ltd, Davey Winder is a three time winner of the Information Security Journalist of the Year award (2006/2008/2010) and received the prestigious Enigma Award for his lifetime contribution to information security journalism in 2011.



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