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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RE[5]: Comment by stabbyjones
by unclefester on Thu 6th Sep 2012 00:48 UTC in reply to "RE[4]: Comment by stabbyjones"
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I don't think Amazon fits in this category since they actually have products and services that they're selling.

Amazon has a valuation of $112b. Yet it has only $370m earnings and no profits (after 14 years!). If Amazon was a real world business the management would be immediately fired and the company wound up.

Reply Parent Score: 2