Facebook may be one of the most anticipated IPOs, but not so with the investment public. More than 70 percent of those surveyed by WhisperNumber.com last week said they wouldn’t buy the social-networking site’s shares after its initial public offering.
The skepticism didn’t end there. Of the 1,100 registered traders and investors polled, 71 percent said they wouldn’t consider Facebook’s stock as a long-term investment, according to data released today by the independent financial research firm.
These responses came before the company boosted its IPO price range, which now gives the company a market value of as much as $104.2 billion.
The poll is the latest to underscore concerns that Facebook’s IPO may be overvalued, amid worries that the company’s growth may taper off.
“I think traders think there’s more hype than actual business,” said John Scherr, founder and president of WhisperNumber.com. “While Facebook has done a great job in gaining users and ad revenue, we’re hearing traders use the word ‘fad’ and phrases like ‘remember MySpace.’”