What can be questioned - and what the company is finally admitting to - is how many of its "900 million" user base are make believe. They say "more than 89 million."
How many more than 89 million? I'm going to guess a lot.
The number 900 million alone should have given people pause and if a company is going to lie about that, what won't they lie about?
In India, and other places, right now as you read this, there are floors of workers creating fake Facebook accounts as fast as they can type.
So they can sell Facebook "friends" and "likes" by the thousands to businesses who would never in a million years get ten likes, let along 10,000.
Google it. In about one minute or less you should be able to find sources where you can buy phantom friends - fake accounts - to create the illusion of mass popularity.
Did Facebook know this was going on?
Does a bear shit in the woods?
Of course they did and yet they stated the "900 million users" number with a straight face.
Even more amazing, many "investors" who should have known better, swallowed it.
The entire value of the business hinges on its potential as an advertising platform and that hinges on its user base. Take away the integrity of that number - and we were warning people about this well in advance of the IPO - and the value there is massively reduced.
I say we will see this dog trading for under a buck.