(Image: The Wall Street Journal )

 

BY BRIAN BONDUS

 

After Facebook’s record breaking IPO — it’s getting few less “likes” lately.  Dallas Mavericks owner and billionaire entrepreneur Mark Cuban sold back his 150,000 shares this week.  He tells CNBC why he made the decision.

 

“I took my hit, my thesis was wrong, I thought we’d get a quick bounce just with some excitement about the stock. I was wrong, and when you’re wrong you don’t wait, you just get out. I took a beating and left.”

 

A beating of a meager $200,000 for the multi-billionaire. He called the loss gambling money. The Huffington Post explains Cuban isn’t the only one losing money with the stock.

 

“Obviously, the walloping wasn’t an isolated incident. Both individual and institutional investors suffered heavy losses from Facebook’s post-IPO nosedive. And despite recent gains, the stock is still around 17 percent below its issue price of $38.”

 

Cuban blamed the large number of shares as the reason why the stock is suffering.  Facebook issued 421 million shares at its IPO. In contrast, social networking site LinkedIn only issued 8.4 million shares at its offering. Despite the negative press, not everyone is defriending the stock.   A writer for the Los Angeles Times notes...

 

“Analysts say there have been recent positive developments for Facebook — including talk of plans to translate its massive user base and troves of data into revenue. Facebook has become more aggressively public about its intention to monetize its service. That emphasis is encouraging to investors.”

 

Despite Cuban selling his shares back, WebProNews says it's time to buy while the price is low.

 

“Facebook may yet prove to be a valuable investment, but like all good things, it doesn’t happen overnight. Also, when prices are low, like Facebook shares are right now, it’s the time to buy, especially if you can afford the gamble.”

 

Facebook is currently trading around $31 a share, $7 under the initial IPO.