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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Comment by stabbyjones
by stabbyjones on Wed 5th Sep 2012 08:39 UTC
stabbyjones
Member since:
2008-04-15

There's nothing wrong with Facebook from a business point. It's more that idiots didn't realise that they were just there to help people cash out rather than make a shrewd investment.

Anyone who thought the ipo was a good buy either has no idea what they were doing with or were the guys selling the shares.

Reply Score: 3

RE: Comment by stabbyjones
by unclefester on Wed 5th Sep 2012 11:04 in reply to "Comment by stabbyjones"
unclefester Member since:
2007-01-13

There's nothing wrong with Facebook from a business point.


The purpose of a business is to earn a strong return on the capital invested. By this definition Facebook is a dismal failure.

Reply Parent Score: 2

RE[2]: Comment by stabbyjones
by JAlexoid on Wed 5th Sep 2012 11:38 in reply to "RE: Comment by stabbyjones"
JAlexoid Member since:
2009-05-19

No. The stock was a total failure of an investment. Facebook is a total success of an investment so far.

But Facebook is not a business and Zuk seems to not realize that. Just like search is not a business at Google. Facebook just needs a better monetization strategy, because it's too average at the moment.

Reply Parent Score: 3