Linked by Howard Fosdick on Wed 5th Sep 2012 05:24 UTC
In the News Remember the dot com debacle of a decade ago? Well, it's back, this time in the form of Facebook. Since its high-profile public offering last May at over $38/share, FB is now down to about $18/share. Management is finding that running a public company is very different than one privately held, as people variously blame Mark Zuckerberg (or not), CFO David Ebersman, lead IPO underwriter Morgan Stanley, and even the NASDAQ stock exchange. The real problem, of course, is that Facebook went public even as its business model desperately searches for new revenues. Let's just hope they don't pull a Digg and fatally redesign the whole site in response.
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Facebook not in crisis, far from it.
by spiderman on Wed 5th Sep 2012 06:40 UTC
spiderman
Member since:
2008-10-23

Whoever is taking the stock price as a sign of crisis is a fool and doesn't understand what Facebook is.
The gamblers (also called "investors" in some circles) lost big time, and that makes me laugh my ass out but don't confuse their crisis with a Facebook crisis.
Facebook is making big profits and big revenues. The gamblers just beted wrong on the profit and I laugh at them, let them rot in hell. I hope they all loose big.
Facebook is doing very well in the mean time, which is a good thing.

Reply Score: 4

Soulbender Member since:
2005-08-18

I'd mod you up but alas....
Yes, Facebook is not in crisis. Facebook is in it for the long-haul and the only ones who has a crisis are the people who didn't use their head and thought they could make a quick buck.
Facebook going public was not, and is not, a problem. Heck, they raised 10 billions with their IPO. If that's a problem I'd like to have one.
The problem is people with unrealistic expectations.

Reply Parent Score: 4

unclefester Member since:
2007-01-13


Facebook is making big profits and big revenues.


Completely incorrect. Facebook has very low revenues (<$6Billion) and operates at a loss. As a business it is a complete and utter failure.

Reply Parent Score: 4

Alfman Member since:
2011-01-28

On the one hand, it's encouraging to see normal developers at the top of the company instead of regular businessmen, but on the other hand...I wish Zuckerberg could be a better leader and get his cards in order.

From all the interviews I've ever seen, Mark Zuckerberg is a competent developer, but he has no idea how to run a profitable company. He hit it big time, but it looks like he was exceptionally lucky rather than exceptionally skilled. He has tons of opportunities with his company's wealth and connections, but I don't think he actually knows where he is going to go from here. My guess is that he's just going to continue with existing momentum, which is fine for him, but probably not good for stock market investors.

Reply Parent Score: 2

kateline Member since:
2011-05-19

FB is in crisis because it is a public company now. Investors ultimately dictate its fate. If the stock price doesn't recover somewhat you can bet there will be big changes.

Reply Parent Score: 2