Facebook results - Oh dear, $157m loss!

By : Administrator
Published 27th July 2012 |
Read latest comment - 17th September 2012

"Facebook has reported a $157m (

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments
Hmmm. the domino effect
"Zynga (US:ZNGA) shares plunged 39% to $3.09 by afternoon trades. The stock has now lost nearly 70% of its value from its IPO price in early December."

Guess lots of users are tired of plowing their fields on Farmville already.

amygarside

Hey shareholders got to get paid eventually Steve. Anyway think a lot of us saw this coming. There has been quite a few over inflated social networking valuations. Wonder if this news will cause investors to be a little more conservative with their valuations of future flotations of social networking companies.

p.s. Apologies for not being on the forum for a while, just been a bit busy. Also could you tell us what what has happened to our signature on our account, it no longer appears on our post.

Accounting Help

Wonder if this news will cause investors to be a little more conservative with their valuations of future flotations of social networking companies.

I dunno, investors never seem to learn, remember the 2000 dot com burst bubble?

p.s. Apologies for not being on the forum for a while, just been a bit busy. Also could you tell us what what has happened to our signature on our account, it no longer appears on our post.

No worries, but sig wise, sorry no idea? No one else has reported any missing sigs, so don't think there is a bug?

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

forum avatarGilesfuchs
30th July 2012 6:11 PM
Wasn't facebook doing well before the IPO? I think they have no plan/idea on what they are doing...at least they should now try to do things to please investors

Gilesfuchs

Wasn't facebook doing well before the IPO? I think they have no plan/idea on what they are doing...at least they should now try to do things to please investors

Guess it's a double edged sword. No investors, you have freedom of strategy and do what you want, but no major capital to implement.

But with investors you have the capital, but all the associated bureaucracy, lack of control and pressure to get a ROI for share holders.

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Well UBS aren't happy. They've loss a bunch of money because of facebook.

BBC News - Facebook share issues hit UBS results

Accounting Help

Can anybody say that they are genuinely surprised.

Personally I don't see Facebooks financial model for success. Market research and intelligence its priceless, but the advertising mode that they expect to financially rule the world with is fundamentally flawed. The moment they start crossing the barrier with advertising and intrude into users personal space to much is the moment they start to face serious problems, and I predict that eventually they will have to give into shareholders demands for profit and try and ramp up the advertising element in everyone account.

Disclaimer: The opinions stated here are 100% my own and do not represent the opinions of the company I work for !!!!

SharClar

And now they're trying to release Facebook Stories which is somewhat similar to Yahoo Voices to provide more personalization for each user. Only problem is I see that being flooded with useless content in a matter of months.

That said, I think the Facebook brand itself will be ok down the road. They're too smart to really screw it up. The only thing they should've done was think up a better IPO entrance. There are plenty of ways to market that platform, they just need to get their ducks in order and stop frightening the investors away.

Arrowhead3

To be fair when the shares went on sale all the financial experts warned people not to go anywhere near them so it's their own fault. The people that bought them early on did well out of it though

Harry1

This Thread is now closed for comments