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Facebook (FB) is set to partly blame Nasdaq (NDAQ) for the poor performance of its stock after...

Facebook (FB) is set to partly blame Nasdaq (NDAQ) for the poor performance of its stock after its IPO when it files a motion, possibly today, to consolidate all the shareholder lawsuits against it, the NYT reports. Lead underwriters Morgan Stanley (MS), Goldman Sachs (GS) and JPMorgan (JPM) are likely to join the motion.
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Comments (19)
  • jeanewight
    , contributor
    Comments (346) | Send Message
     
    Play the blame game, yeah, pass the buck....Let's see what they come up with for a coordinated, face-saving response
    15 Jun 2012, 06:47 AM Reply Like
  • tjmxxx
    , contributor
    Comments (96) | Send Message
     
    They overvalued the stock, as well as issued far to many shares. That part of the blame does not belong with NASDAQ.
    15 Jun 2012, 08:02 AM Reply Like
  • frosty
    , contributor
    Comments (702) | Send Message
     
    Gimme a break! FB is just another fad 'investment' pumped by Wall Street to daytraders who hope to relive 1999. Others that failed the investment grade test are ZNGA and GRPN. Perhaps, instead, we're reliving 2000 with these fad stocks. Speculators should realize what they're getting into when buy stock in hyped but untested company and be prepared to take a loss, not just expect a huge gain.
    15 Jun 2012, 08:17 AM Reply Like
  • george.otty@yahoo.ca
    , contributor
    Comments (60) | Send Message
     
    Just a matter of time before FB becomes the all-but-forgotten (except by the investors) "old social networking application". Remember Netscape? It virtually owned the browser world when Microsoft was ignoring the Internet and Google was just a University research project. Where is it today? Where is MySpace? Just think of all the people, all the companies out there currently working with newer ideas of a social network site. It's just a matter of time. Get kids/teenagers hooked on something newer and cooler and watch the rapid acceleration of people switching over. I wonder if Apple is secretly building something?
    15 Jun 2012, 08:24 AM Reply Like
  • Robert Egloff
    , contributor
    Comments (190) | Send Message
     
    @George: Couldn't agree more think you are spot on there. Notice how they are doing the same thing as the above - blaming and soon probably litigating - instead of innovating.

     

    Yep, while FB plays a blame game, some other company has developers working hard on mobile apps and social networking ideas. Finger pointing games only keep more people away from your stock FB. The best strategy they could have right now is to keep their mouths sealed and go come up with something to lock in those users - regain their interest, they are getting bored with FB, I think.

     

    It takes so very little to topple a 'web empire' - even though I like some risk, these are usually too unpredictable for me, even though I know some pay off big time - like Google did.
    15 Jun 2012, 08:52 AM Reply Like
  • Trongod2000
    , contributor
    Comments (93) | Send Message
     
    I think you and George are both wrong. Neither of you mention the legalized gambling on mobile that Facebook, Zynga, Wynn Resorts and American Express are joining forces to enter. They already have in Australia and Canada. Fad now but a mega company in the future.
    15 Jun 2012, 02:26 PM Reply Like
  • Robert Egloff
    , contributor
    Comments (190) | Send Message
     
    Good point - never thought of that angle, and I do love Roulette on FB! It may well pay off, nothing against FB personally. Just most tech in general are stocks I prefer to avoid, and that's the industry I work in - maybe it's because I have to keep up on 'tech' enough for work and find it more interesting with investing to keep up with other sectors.
    17 Jun 2012, 11:25 AM Reply Like
  • jamesbwood
    , contributor
    Comments (307) | Send Message
     
    The ones that pay off big time are usually the ones that are busy with innovation instead of the companies that are busy putting out PR releases and figuring out how much they can inflate their stock.
    15 Jun 2012, 09:44 AM Reply Like
  • Mbrillo1
    , contributor
    Comments (414) | Send Message
     
    Gentlemen,
    Within 6 months, you will all see that your short-sighted opinions are
    nothing more than a few individuals who no not what they are talking
    about.
    Time will tell.
    You with little faith......
    15 Jun 2012, 10:32 AM Reply Like
  • george.otty@yahoo.ca
    , contributor
    Comments (60) | Send Message
     
    Actually I have a lot of faith. Just that my faith is not in a long-in-the-tooth social networking site that first became popular with very, very fickle teenagers who not only will always migrate in droves to a better, cooler product the minute they think the old product is no longer the one their peers use. This has nothing to do with any stock market savvy you may or may not have. It's a completely different animal. And as FB modifies it's user-experience to try and drive more clicks to outside products and ads, it's user base will tire of that quickly. I will say though, it's not going to happen in 6 months. Make your money while you can. But this is not a blue-chip stock to gather over time and plan to retire on from it's dividend payments.
    15 Jun 2012, 11:22 AM Reply Like
  • whipsawKid
    , contributor
    Comments (36) | Send Message
     
    WOW, blow me away dude. I bought Myspace at $1.50 and tripled my money, now look at the stock. Things change so fast in that arena no one could EVER predict what will happen in 30, 20 or even 10 years. But I guess you will show us all...
    15 Jun 2012, 12:58 PM Reply Like
  • Trongod2000
    , contributor
    Comments (93) | Send Message
     
    Maybe their are a lot of kids on Facebook and playing games on mobile but the thing is morfing into an adult thing to. Check out the links between Wynn Resorts, Zynga and American Express. That kind of group are not looking at kids my friend. They are going after mobile gambling and doing it well. NOBODY except the Russians are even close to what they are putting together. Zynga's poker game is #1 and has been for years. YEARS not flash in the pan type stuff. More like flash on the internet. As in FLASH games. These guys may be long in the tooth but that just means they can bite your ideas and spit them out better. Zynga has made a reputation on making "the next cooler product" so Facebook is in the lead and will remain there till someone buys them out.
    15 Jun 2012, 02:33 PM Reply Like
  • george.otty@yahoo.ca
    , contributor
    Comments (60) | Send Message
     
    Isn't MySpace now owned by Justin Timberlake or something? Is he listed on the stock exchange somewhere? There's no myspace stock to even look at anymore.....oh and it had Zynga too at one point, I believe. Did that save myspace as it got all bogged down with advertising?
    Ok, I've put entries into my google calendar to come back to this thread in 10 years and see how it's all unfolded. Meanwhile, long term I know which way I'll bet.
    15 Jun 2012, 05:12 PM Reply Like
  • george.otty@yahoo.ca
    , contributor
    Comments (60) | Send Message
     
    I think my point was that every social networking site I can think of was successful first by gaining "kids", the tech-savvy internet generation of teenagers. FB, Myspace, etc. It was not adults. When someone builds the better mousetrap and targets it at teenagers and it starts to take off and those same teenagers start moving across and dropping their FB accounts because all their friends are over at the new site now, parents will follow. And then the rest of the adults will follow and along with them, the 3rd party product developers and advertisers. This is not a wild guess on what might happen. This is exactly what does happen, over time, every time. Like I said in an earlier comment somewhere, imagine with the wild success of iPhones if Apple built a new, super-cool social networking application that caught the attention of those same teenagers. Think about how fast the iPhone brought the Blackberry impregnable fortress to it's knees.....
    17 Jun 2012, 10:08 AM Reply Like
  • Trongod2000
    , contributor
    Comments (93) | Send Message
     
    I read your comment with interest. I'd like to know how you explain the fad site called YouTube. It is now over 6 years old and going strong. It is still evolving and I have gotten mad at it more times than I can count for how it changes channel display etc. and so have millions of others. But, they are still there... It's full of pro videos now where in the beginning it was all amature. It's making money now and back then was not. Google is crying all the way to the bank and so are the google investors over how bad they are doing... Right! Now we will see if FaceBook evolves as YouTube has. My bet is that it will. Heck, it already has and will continue to do so.
    FaceBook, like YouTube, started with a bunch of kids as you say. It is now filling up with pages of corporate promotion. Watch how the companies build brand with games based on them. Its same with YouTube vids built on movies and games. Have you ever seen a toy or stuffed critter in the store based on a movie character? The new thing is that merchandise is built into FaceBook. So are coupons and the women out there are learning about it. It might have started as a kid site but it isn't just a kid site anymore.
    18 Jun 2012, 12:36 PM Reply Like
  • Trongod2000
    , contributor
    Comments (93) | Send Message
     
    I have to repeat myself. Look at the connection that American Express, Wynn Resorts, Zynga and FaceBook are building.
    http://bit.ly/L9aNUj
    Maybe this link will bring my point home to you. The growth potential in all of this is huge and the big players see it and are going after it. In the 10 years you plan to wait you will be able to look back and think "OMG" as those kids your talking about would say.
    18 Jun 2012, 01:11 PM Reply Like
  • mustluvdogs
    , contributor
    Comments (5) | Send Message
     
    Who is Schwab's underwriter?
    15 Jun 2012, 02:12 PM Reply Like
  • faustius
    , contributor
    Comments (473) | Send Message
     
    I don't really understand the intricacies of IPO litigation. Doesn't all the blame fall squarely on the underwriters?

     

    Let's see what they did:
    Jacked up the IPO price
    Hid an internal analysis from all but a few insiders
    Sold far more shares than were being offered at the IPO price, and then covered by buying them back after the price crashed.

     

    Given all that, I don't understand why FB is standing by the underwriters and trying to blame NASDAQ, instead of throwing them to the wolves.
    15 Jun 2012, 09:08 PM Reply Like
  • wkrv
    , contributor
    Comments (4) | Send Message
     
    FB is the only one that should be held responsible for the IPO
    fiasco, not NASDAQ or the underwriters. FB is the one that changed
    the offering to 38.00; they should have kept it at 28.00+; then we would not have all these investigations and accusations. FB owes their investors and should cover the loses they incurred if they bought at 38. Not like they[FB] cannot afford it.
    17 Jun 2012, 03:57 AM Reply Like
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