Loading ...As the Facebook IPO debacle continues, a lot of people are still scratching their head about what really happened. In short, the social network’s underwriters lowered their earnings estimates after Facebook realized that its second quarter was not going to be as profitable as it had originally thought. This information was then distributed to a select few investors before the company’s public debut on May 18.
Since this information was not widely published, a lot of confusion ensued once Facebook began trading. As a result, the stock dropped considerably from its opening price of $38 and is now sitting around $30.
According to Francis Gaskins, the President of IPO Desktop, none of these events are surprising given Facebook’s past quarter earnings. He explained to us that the company was valued too high from the beginning – a mistake which he believes Mark Zuckerberg is responsible for.
Gaskins tells us that there are “lots of risk [and] lots of uncertainty in the stock.” What’s more, the company’s credibility and brand have both been harmed.
At this point, several lawsuits have been filed against many of the company’s underwriters, Nasdaq, Facebook, and even Zuckerberg himself. Congress is also planning to step in to investigate. There is also talk of Facebook dropping Nasdaq for the NYSE.
It remains unclear as to what will happen next, but one thing that is certain is that underwriters will examine IPOs much more carefully going forward.
No surpise that FB has duped on the share price or the fact that it is overvalued.
It was started with terrible intentions of perving and rating colleague girls, its a gaint database of your personsal data that gets sold and well I have never ever clicked on or purchased anything through this platform.
If you look at the ROI on advertising platforms, FB has usually the lowest ROI.
The two main things that I see are:
1) Turning to the den of thieves (Wall St.) and letting them take the company public.
2) Trusting them.
I thought Zuckerberg was supposed to be so smart?!
He should have devised a way to sell stock solely to the Facebook community … if you wanted in on the stock and you weren’t a member you then had to become one and that would have added to the Facebook community/market (est. 900M). He could have showed them his gratitude (for being a Facebook member) by offering a real deal on the stock which would have garnered good press.
These actions would have insured the Facebook member’s loyalty and also their continued involvement with Facebook and it’s commercial endeavors because it would be adding to their, “the stock holders”, pockets.
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This will be known as the “Facebook IPO Scam”
Social networking is dying, facebook extremely fast. It’s the same people on, posting the same messages.
I wrote an article over a week ago: http://www.roberttanguay.com/news/facebook-ipo-fail-scam/
Facebook is the Emperor’s new clothes.
If you were in a bar socialising with your mates, you’d probably be a bit miffed if someone came by and kept advertising stuff at you while you were hanging out. Same thing. People use FB to socialise, they’re not interested in spending money when they’re on there, and they’re not looking for a product (which is why google adwords works so well), so the advertising only works for building your brand at best.
Besides which, why exactly should FB be worth SO much? Sure, it has a lot of members, but so does the yellow pages…
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I think your a fool if you think Facebook is dying, while it maybe outgrowing its original use, which even zuck probably had an inc and new he had just the tip of the possibilities, people unfortunately are willing to throw away there right to privacy to “connect” with people, and I only see it getting bigger, it’s no mistake that damn near every sight out there interphases with Facebook. Buying something on amazon? Tell your friends on FB! Reading something you bought at Barnes and noble? Tell you’re. FB friends! Need I go on??!