Who Would Have Thought There Would Be A Scandal Over The Facebook IPO?

Who would have thought that there would be any kind of scandal associated with the Facebook initial public offering? I mean, nobody could have imagined that there could be any sort of problem with a company whose IPO price was set at something like 99x their current share price. Right?

I suppose it could be surprising that the scandal and lawsuits are already going. That didn’t take much time, or it seems that way to me at least since I don’t remember when the IPO happened (primarily because I’m not one of the Wall Street customers who can get in on the initial buy and thus don’t generally see IPOs as a way to make money but more of a way to take it in the shorts in general).

Supposedly, if I’ve got this right (and I don’t care to check), the IPO documents allegedly misrepresented Facebook’s revenue. Supposedly, the numbers they cited for ad revenue more reflected their height and don’t reflect the modern trend of people using mobile devices to access (where apparently it is harder to serve and thus sell ads).

Now, I admit that Facebook could potentially have withheld this kind of info. I really don’t know. I haven’t looked into that because I don’t care (I wasn’t enough of a sucker to buy), but that sounds like something a lot of companies would have pulled in their position.

However, who was really buying who hadn’t seen this trend? You can’t walk two feet down the streets of most US cities without seeing someone using Facebook on their phone. Didn’t sophisticated investors wonder how this would impact advertising revenues?

Now, they might have assumed this was already reflected in the numbers they were given. Still, I think they were pretty stupid if they did. This is a visible trend and will likely increase rather than decrease. They needed to consider this before.

Still, if Facebook did something they shouldn’t have, then they deserve to be punished. Finance in this country has too much of this type of sneaky dealing as it is. I’m just saying that I think people buying into Facebook should have been more cautious. I still remember the tech crash in 2001-ish. This has that sort of thing written all over it.

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About David S. Atkinson

David S. Atkinson enjoys typing about himself in the third person, although he does not generally enjoy speaking in such a fashion. However, he is concerned about the Kierkegaard quote "Once you label me you negate me." He worries that if he attempts to define himself he will, in fact, nullify his existence...
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2 Responses to Who Would Have Thought There Would Be A Scandal Over The Facebook IPO?

  1. Stephanie says:

    Facebook is a silly bird.

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