In a matter of few days, the eight-year-old company we know and mostly love has shed more than $33 billion in value - several billion more than the market capitalization of Morgan Stanley the lead underwriter of Facebook's IPO and slightly more than the market capitalization of Time Warner, one of the largest media companies in the world. To put it another way, close to 10% of GDP of Iran!
Fortunately most of the $33B loss was borne by large institutional investors; the minimum buy for the IPO was around $1,000,000.
Many of key executives of FB itself suffered huge dents to their net worth; Mark Zukerberg's net worth was decreased by $6 billion for example.
A significant number of unbiased (on Wall Street? Please!) analysts place a value of $16-$18 on the stock. Many ask how this initial public offering was sold for $38 a share to highly paid professionals who buy and sell securities for a living.
There is probably no one complete reason. There are probably many key factors that led to this. But the underlying problem is institutionalized fraud and looking out for personal interest only attitudes on Wall Street.
One thing is for certain. Many of the managers responsible for buying FB IPO will be fired soon if not already. A large number of law suits will be filed against underwriters, Nasdaq, Facebook and Zukerberg himself. It is only a function of time.
|Recently by rbnfl||Comments||Date|
|Power of Crowd Funding for dental care professionals|
|Dec 03, 2012|
|Facebook shares on the rise, and for good reason.|
|Oct 24, 2012|
|U$D=34,000 Rials; what then?|
|Aug 24, 2012|
|نسرین ستوده: زندانی روز||Dec 04|
|Saeed Malekpour: Prisoner of the day||Lawyer says death sentence suspended||Dec 03|
|Majid Tavakoli: Prisoner of the day||Iterview with mother||Dec 02|
|احسان نراقی: جامعه شناس و نویسنده ۱۳۰۵-۱۳۹۱||Dec 02|
|Nasrin Sotoudeh: Prisoner of the day||46 days on hunger strike||Dec 01|
|Nasrin Sotoudeh: Graffiti||In Barcelona||Nov 30|
|گوهر عشقی: مادر ستار بهشتی||Nov 30|
|Abdollah Momeni: Prisoner of the day||Activist denied leave and family visits for 1.5 years||Nov 30|
|محمد کلالی: یکی از حمله کنندگان به سفارت ایران در برلین||Nov 29|
|Habibollah Golparipour: Prisoner of the day||Kurdish Activist on Death Row||Nov 28|