Facebook: Thanks for PUMPING Our Shares for Free, LOL

The Facebook (NASDAQ:FB) circus is in town! Which town? Every town. How, you ask? Courtesy of the hyperventilating media who have descended on Facebook headquarters faster than New Orleans during Hurricane Katrina.

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Another stroke of brilliance masterminded by Mark Zuckerberg. Not only does he already have 900 million users who are prospective shareholders, the mainstream media — particularly the financial media — is acting as a FREE billion dollar marketing and PR platform leading up to the IPO. This is the type of pumping scheme Wall Street dreams are made of.

Although plenty of institutions must buy Facebook shares simply to reflect the Internet economy, the media frenzy is bound to attract hordes of idiot retail investors at any price. 14 times revs? What does that mean? EBITDA? Is that a competitor to E*TRADE? Ah, the Facebook IPO has the potential to be a Harvard Business School case study in how irrational crowds help separate equity valuations from the realities of an underlying business.

Good luck out there today if you trade FB. You can send a thank you note to Bloomberg and CNBC if you catch part of the pump.

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