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Facebook Shares Fall Below IPO Price: Who's to blame?

Fef 2012/05/21 18:43:25
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Facebook's IPO shares sold out at the high end of its asking range. However, the highly anticipated stock faceplanted on its second day of trading. After months (if not years) of media hype and speculation, the stock of social-networking giant dipped below its initial public offering price ($38 per share). Many cite Facebook's earnings as less-than-stellar for the second highest IPO company in history. NASDAQ admits mistakes in its trading platform. And the media now reflects on itself for talking up the stock like a holy grail.

Who deserves the blame for Facebook falling below its IPO price?The stock sank without the full support of the company's underwriters, leaving some investors down nearly 25 percent from where they were Friday.

stock sank support companys underwriters leaving investors 25 percent friday

Read More: http://www.cnbc.com/id/47503280

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Top Opinion

  • Met 2012/05/21 18:49:40
    Media, Analysts and Pundits
    Met
    +4
    And the dumb asses who bought facebook stock. Enjoy that 2007 flashback. Meanwhile, any analyst worth his salt will tell you, when a company maxes out it's revenue stream before going public, you do not buy their stock.

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  • Selketskiss 2012/05/30 18:09:41
    Facebook
    Selketskiss
    I read somewhere there is a joined effort, for 10's of thousand will be deleting their accounts on facebook at the end of the year (Dec.) thousands are already leaving and I will to..
  • oros 2012/05/22 13:33:19 (edited)
    Facebook
    oros
    +2
    Hype? Don't mind if I have a good chuckle do you!
  • nothingbutthetruth 2012/05/22 05:16:45
    Facebook
    nothingbutthetruth
    Everybody need to take responsibility for their failure and Facebook is no exception. I also blame the Media Analysts and pundits for washing mouth over it and setting too high a standard for it's first shot(:
  • beach bum 2012/05/22 03:09:45
    Facebook
    beach bum
    lol...glad i did not buy any
  • Ken 2012/05/22 02:28:27
    Media, Analysts and Pundits
    Ken
    Not worth the price.
  • Jimbo 2012/05/21 23:55:32
    Facebook
    Jimbo
    +1
    and the 1,000,000,000 people on Facebook for selling our souls.
  • A Founding Father 2012/05/21 23:34:55
    Media, Analysts and Pundits
    A Founding Father
    Before you begin to laugh or cheer for this predictable event, consider that you have probably lost some money in this Monopoly game. Only 20% of the authorized shares were "put into play", nearly all were "reserved" for the trading desks of the Reagan Banks and Wall Street brokerages. They used your money, your 401k, retirement funds, your mutual funds, to buy this stock from the underwriting banks and brokers. Now, the banks and brokers had your money, extracted their large fees, then gave the founding boys their $Billions and left a little for the corporation. You then had the risk of the shares falling in value. Had the share gone up quickly, the underwriters would have sold some of the shares authorized to increase their profits and keep the greater risk on your funds.

    So, this is how it works in such markets. You have lost something if you were "in the game" through your "investments", which are controlled by those controlled by the banks and brokers. Welcome to America, home of the scams, pillage, plunder and white collar criminals that can play with your money and leave you with the risks they don't need to take s they can live well on the "fees", "commissions" and "bonuses" as well as their options to trade the remaining 80% of the stock to you without your even knowing it.
  • Rusty Shackleford 2012/05/21 22:30:46
    Facebook
    Rusty Shackleford
    +1
    Blame?

    Why must blame be assigned for this?
  • ETpro 2012/05/21 21:44:43
    Facebook
    ETpro
    +1
    I see the righties here always think the Media did it. Now it's even the Media's fault when a stock doesn't perform well. For people who you deem so incredibly incompetent, they sure do control lots of things. Certainly, the stock evaluation couldn't possibly have ANYTHING to do with the fact that, for such a massive IPO, Facebook hasn't really figured out any formula to adequately convert eyeballs on their pages into profits.
  • Duke----The Non Racist, Fun... 2012/05/21 21:30:04
    Facebook
    Duke----The Non Racist, Funny Duke !
    +2
    Aaaaaaha ha ha ha ha ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah oooooooaaaaaaahahaha ah ah ah ah ah ah ah ah ah oo o oops ! I think I farted aaaah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah ah..........
  • Selkets... Duke---... 2012/05/30 18:02:33
    Selketskiss
    +1
    LOL...
  • YouSirName 2012/05/21 21:19:58
    Media, Analysts and Pundits
    YouSirName
    +1
    Idiots who think this company is more than a pasing fad.
  • OPOA912 2012/05/21 21:14:17
    Facebook
    OPOA912
    +1
    NEVER OVER PROMISE AND UNDER DELIVER
  • Tennessee3501 2012/05/21 21:13:04
    Media, Analysts and Pundits
    Tennessee3501
    +2
    President Obama blames Bush! Nancy Grace blames Casey Anthony. Al Sharpton blames George Zimmerman. Kanye West blames Taylor Swift. Mark Zuckerburg blames his new wife. Sandra Flouke blaimes Rush Limbaugh. VP Joe Biden blames VP Dick Cheney. Dick Cheney is oiling his shotgun! LOL !
  • Selkets... Tenness... 2012/05/30 18:03:30
    Selketskiss
    +1
    LMAO....
  • none 2012/05/21 21:00:10
    Media, Analysts and Pundits
    none
    +2
    Bush, don't forget Bush.
  • Mark5610 2012/05/21 20:29:04
    Media, Analysts and Pundits
    Mark5610
    +1
    I like FB but it'll go the way of My Space when a new social outlet comes along
  • S and S 2012/05/21 20:25:54
  • EdVenture 2012/05/21 20:19:46
    NASDAQ
    EdVenture
    This is what it was all about, get in make a killing, get out. Natural response of most participants is to put in an investment plan but some, usually with large sums, and bail for short term. Often this locks the masses investors in for the long to equalize their position. Its a game for some, including the owners. Also the anticipated full anticipated value was the offering on a speculative basis.
  • Scott 2012/05/21 20:13:46
    Facebook
    Scott
    In looking at the responses, I just knew some jack-off would blame it on Obama. There is no end to some people's idiocy and hatred.
  • Fred 2012/05/21 19:58:50 (edited)
    Media, Analysts and Pundits
    Fred
    +1
    FB is in no way Googke or Appke and stupid people who couldn't see that hyped and suckered people. People forget that it took Apple years of product adjustment to find its market. FB may or may not be a long term success. It has to find a way to create an income streaming like any business. It Tessy doesn't have one.now as level-headed people pointed out last week.
  • Cuppajo 2012/05/21 19:54:33
    Media, Analysts and Pundits
    Cuppajo
    Obama and the economy.
    People don't have "spare cash" to invest right now, thanks.
  • Headhunter 13 2012/05/21 19:52:59 (edited)
    Media, Analysts and Pundits
    Headhunter 13
    +1
    This is looking like the beginnings of another dotcom type fiasco.
  • Pete 2012/05/21 19:48:18
    Media, Analysts and Pundits
    Pete
    +1
    Facebook knew that they where much to high on the outtake, they should have opened at $28.00/share, but greed is there middle name. For NASDAQ to step up and take the blame is admierable but just think who benifited the most! Oh well maybe I'm wrong but smelling a skunk in the wood pile I avoided the sheep shearing.
  • Stan Kapusta 2012/05/21 19:43:49
    Media, Analysts and Pundits
    Stan Kapusta
    +1
    All I seen on TV is why Facebook would not be as good as.... The originator give up his citizenship because...ETC. How about the media reporting the news instead of trying to create it.
  • Claybern 2012/05/21 19:31:15
    Media, Analysts and Pundits
    Claybern
    +2
    This one was easy to answer.
  • Farnsworth 2012/05/21 19:27:33
    Media, Analysts and Pundits
    Farnsworth
    +2
    GM for saying it's advertising was ineffective on FB.

    The IPO was to high IMHO.
  • Elaine Magliacane 2012/05/21 19:25:54
    Facebook
    Elaine Magliacane
    +2
    STOOPID Timeline everyone hates and they won't get rid of... for 1 thing... personally I doubt Facebook will last 5 years... it's become a bloated and too commercial... someone will figure out a better way... Google + maybe, or some other 20 year old kid with a better idea.
  • mrdog 2012/05/21 19:18:04
    Media, Analysts and Pundits
    mrdog
    +1
    Fadebook it was report.... bark
  • wicked soda boy 2012/05/21 19:10:19
    Media, Analysts and Pundits
    wicked soda boy
    +1
    These industry folks know there are many suckers out there who love to be the first to buy these IPO's, even if they lose a bunch of $$$$$.
  • heirsoftheking 2012/05/21 19:08:47
    Media, Analysts and Pundits
    heirsoftheking
    +1
    I'd say "Whoever Over-Valued It."
  • merlinskiss 2012/05/21 19:04:35
    Media, Analysts and Pundits
    merlinskiss
    +1
    It is no ones "fault" and no one is to blame. Most IPO's open with hype at an established price. It is not unusual to see the price drop following the initial, set IPO value and then find it's own market stabilized price based on investor determined values. The real question is, what will that value finally be and when will it be reached. Personally, I am watching it to see if it might be worth putting a few bucks in to it.
  • Fef merlins... 2012/05/21 19:38:23
    Fef
    +1
    I mostly agree. I don't blame anyone. Facebook stock sold on second market for years.
  • merlins... Fef 2012/05/21 22:28:46
    merlinskiss
    Why Fef, are you toying with the idea of going public? ;-)
  • j2 2012/05/21 19:02:01
    Media, Analysts and Pundits
    j2
    +3
    The fundamentals didn't really support the share price. Facebook was over-hyped.

    Castles in the air.
  • fluer 2012/05/21 18:54:00
    Facebook
    fluer
    +3
    I am not real sure where the value is in this company. They are not a great site, they advertise way too much and the glitches are legendary. But looking at Google which is also a company I thought the FB IPO would bounce well and it surprised me that it didn't. Perhaps it would have done better in a bit of a stronger economy. But to me this had nothing to do with the company itself needing funds it was all about making money on the shares. They are not trying to expand or use the capital for any productive process so why should I support their greed?
  • Met 2012/05/21 18:49:40
    Media, Analysts and Pundits
    Met
    +4
    And the dumb asses who bought facebook stock. Enjoy that 2007 flashback. Meanwhile, any analyst worth his salt will tell you, when a company maxes out it's revenue stream before going public, you do not buy their stock.
  • blissful 2012/05/21 18:49:37
    Media, Analysts and Pundits
    blissful
    +1
    The jealous apposing web sites that are against FB and the Media..
  • Fef blissful 2012/05/21 19:40:22
    Fef
    +1
    I think most websites supported Facebook. We want to see a tech boom.
  • blissful Fef 2012/05/21 20:14:20
    blissful
    So I guess the answer would be the Media..

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