Or perhaps Mr. Market thinks it's a solid, say, $25 or $35 billion company that was just way overvalued at the IPO valuation of $100 billion plus. There's certainly a whole lot of commentary along those lines in the financial press, like this example from a few days before the IPO: http://marketday.msnbc.msn.com/_news/2012/05/15/11702548-is-...
That's certainly a defensible position: the company is stable and profitable as is, but the current valuation has a lot of growth priced in, which could only be realized by growing revenue per user substantially, and they haven't yet demonstrated how they're going to do that.
That's certainly a defensible position: the company is stable and profitable as is, but the current valuation has a lot of growth priced in, which could only be realized by growing revenue per user substantially, and they haven't yet demonstrated how they're going to do that.