A few interesting reports ‘dealing’ with Facebook’s IPO and performance thus far.
There have been 23 U.S. IPOs over that size since 2007. Through the first three sessions, only asset-manager Och-Ziff Capital performed as poorly, losing 13% as well, according to Dealogic. In fact, only seven of the deals ended their first three sessions in the red, the data provider says.
Morgan Stanley and Goldman Sachs Group Inc. updated their financial projections for the social network after the company added warnings to its initial-public-offering prospectus about how its user base is increasing more rapidly than the number of ads it delivers. That trend was blamed in part on increased use of Facebook on mobile devices, where it traditionally hasn’t shown ads to viewers.
The Financial Industry Regulatory Authority’s chairman said on Tuesday that regulators plan to review allegations that Morgan Stanley shared negative news before Facebook’s initial public offering with institutional investors.
Facebook (NASDAQ:FB) has received a lot of flak for its privacy rules, but Google (NASDAQ:GOOG), for one, thinks they can be looser. Google chief executive Larry Page has hit out at the social network for not allowing the search engine biggie to comb through its data.
U.S. stocks were on track to post two consecutive sessions of gains for the first time this month, after optimism about a coming European Union meeting and better-than-expected housing data sent the blue chips up more than 40 points.
It appears that even giant Facebook makes mistakes when it comes to social media strategy. Its biggest failure, as the Wall Street Journal’s Shayndi Raice reports today, is that Facebook has delayed the launch of a full-fledged mobile app that allows users to play games and take advantage of other popular apps that are available on its desktop version.
The only humor in this post comes from the report that Google accused Facebook of ‘hostage taking’ for not letting the sinister search engine giant have access to their data. The number one ranked internet site is complaining about number two for their own selfish reasons.
The linked excerpts in this post say a lot about what’s wrong with this entire episode. Too bad Facebook users refuse to see Zuckerberg’s kingdom for what it is. Ditto for the number one internet site. The exception to that is the users who joined the dozens of class actions suits filed. We should be a lot further along with technology from where we are. Consumers are just as guilty for the situation by not holding the tech sector’s feet to the fire.
That’s how it is supposed to work. Customer feedback causes vendors to adjust to demand and then supply it. Apparently most people are just fine with the current state of the art.
BTW, Facebook stock is ‘poised’ to take another hit on day three hovering around an 8% loss from the previous day with less than an hour of the trading day to go.