Popping: The Social Media Bubble

Facebook’s three-month lockup period (the period after an IPO in which insiders are barred from trading their shares) expired Thursday, and Facebook stock has since plummeted to record lows as insiders scrambled to make bank while they still can. Since its ridiculously hyped, massively overpriced IPO, Facebook has eviscerated nearly half its value, value not lost by those who built the company or even early investors — that $100 billion number was always made up to begin with — but value lost by the public: mutual funds, pension funds, possibly your 401k account.

Facebook’s continued financial downfall completes a trifecta of sorts, what system skeptics ZeroHedge are calling the “triangle of IPO terror” that share a common theme of tons of users, questionable product quality and really crappy business models.

Read the rest over at Motherboard.