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Readers Respond

News Opinion Readers Respond

Not many 'likes' for Facebook IPO

Kevin Kallaugher's depiction of new investors in Facebook essentially as being sheep waiting to be sheared ("Standing between Fortune and Chaos," May 20) was right on the mark. Despite a reported 900 million participants in Facebook, but with only $5 in revenue for each participant, the price-to-revenue ratio, not to earnings, was an astronomical 20-to-1, and this before the expenses and taxes are considered.

With a number of companies pulling out from advertising on Facebook, the inability of founder Mark Zuckerberg to generate a greater yield per user and competitive companies starting to cut into the user base, the original founders of Facebook made a killing at the expense of those who came too late to the action.

Nelson Marans, Silver Spring

Copyright © 2015, The Baltimore Sun
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