Did you mean overvalued?
If so, I would agree that it's overpriced and that the company's worth is over valued too.
True internet businesses, which technically do not have a standard brick and mortar "product" and costs where the value of the firm is relatively easier to calculate. In an Internet entity, true value is all in the "idea" and it's really a perception on how solid the "idea" is.
FB is making a punt on the portion of the idea is worth 16B.
I personally feel the value will be closer home, when FB actually start to make a product, like a la apple and consummates the marriage between silicon valley and main street, so to speak.
Overpriced and undervalued.
See what happened to Zynga and Groupon to know what will happen here.
I see the price going to $50 short term and then tanking to $20 or so, a far cry from the $38 launch.