What do the artist Prince and CEO founder Zuckerberg have in common? Both are associated with the number 1999. In Zuckerberg’s case, only briefly, as on Thursday, Facebook stocks continued to plummet, dropping as low as 19.82, before closing at $20.04. Not good for investors who jumped on board on the day of the IPO.
Should the stock keep dropping, there will be fewer sales of little red corvettes, or Teslas, in Silicon Valley in mid August, when the lock-up ends and employees can start selling up to 268 million of the 1.7 billion shares they have.
Facebook’s market cap (valuation) as of end of day Thursday was $37.6 billion. This means
that those who were projecting a $100
billion valuation have to remain in
hiding. The person still coming out good
in this is Kellogg School of Management assistant professor Anup
Srivastava, (accounting information
management). Srivastava;s valuation model arrived at
a base case valuation of $25
billion. http://kensek.blogspot.com/2012/02/is-facebook-really-worth-100-billion-in.html
Meanwhile, Facebook reported that as many as 83 million (about 8.7%) of its accounts may be illegitimate.
The includes duplicate accounts, misclassified accounts, and accounts deemed “undesirable”. This 83 million figure is greater than the
number of people who use Google on a daily basis.
http://www.bbc.co.uk/news/technology-19093078 .
http://www.bbc.co.uk/news/technology-19093078 .
So August isn’t starting out well for the firm. There’s the above and some of the team is starting to depart. Ethan Beard, Facebook's director of platform partnerships, and Katie Mitic, the company's director of partnership marketing, are both leaving the company.
To view Facebook’s quarterly financials, and learn more about their risk factors and issues they’ve identified, go to their updated 10-Q. This document is only about 60 pages.
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