NEW YORK ( TheStreet) -- Social media giant Facebook (FB - Get Report) can boast about having 900 million users worldwide. But as popular as it is, it seems that the company has also developed an equal following of bears who wants nothing more than to see it fail.
Remarkably, the hysteria that surrounded the company, leading to what was clearly an inflated IPO valuation, has had a severe negative effect on the company's reputation. In particular, it has created a rash of bitter investors hurt by their own greed and now seeking revenge.
Unfortunately for these investors not only will their thirst for revenge fail, they are going to discover that betting on the company's failure at this point will only produce more agony because as I've noted recently, though the stock has been in somewhat of a freefall since going public, it has already reached its bottom at a price of $25.52. While calling a bottom may be a tad premature, evidence suggests that is in fact what has occurred. The stock has risen as high as 8% since touching its all-time low.
As hard as that may be for this group of haters to accept, it seems that Wall Street has also started to embrace the idea. According to Mark Harding of JMP Securities, upon initiating coverage of the company with a market outperform rating, he says that the next target will be $37 -- or $1 short of its IPO price. Even then, there are readers who want to insist that the stock should still be rated a sell because it belongs in the single digits -- except, they are unable to articulate why.I will concede that Facebook was significantly overvalued at $38. It had no business being compared to Apple (AAPL), Google (GOOG) and Amazon (AMZN), and had yet to prove that it had a discernible business -- period. The argument has always been that for all of the 900 million people that are using the service, the company had yet to figure out a way to get these users to open up their wallets -- even though it knows how much money are in these wallets and where they like to spend.