Internet pioneer Mark Cuban has already cashed out of Facebook, selling all of his 150,000 shares, he told CNBC Monday on “Squawk on the Street.”
"I already sold it, I took my hit, my thesis was wrong. I thought we would get a quick bounce just about the excitement about the stock. I was wrong, and when you are wrong you don't wait, you just get out. So I took a beating and left," Cuban said.
Facebook stock was a trade and not an investment because there was an over issuance of shares, Cuban said.
The social networking giant issued 421 million shares, a move that Cuban said hurt the company's stock price.
"I mean if you look at other companies like LinkedIn , they issued 8.4 million shares and the stock skyrocketed. If Facebook would have come out with 8.4 million shares, instead of 421 million, the stock would be at about $200 right now. So it was just the circumstances that led to me getting in and out," Cuban said.
Although Facebook has only traded as a public company for one month, it has had its fair share of issues. Along with a botched IPO and shareholder lawsuits , the company has also faced increased criticism of how it plans to monetize its mobile platform.Page 1 of 2 | Next Page