Breakingviews

Mini-me tech bubble is mere shadow of 2000 excess

May 5, 2014

The run-up may have paused, but dozens of companies are in line to float, hubris is rampant, oddball metrics abound, and revenue-free startups are still worth fortunes. Even nerd culture has become hip. The latest internet boom is as absurd as the last, but it’s far smaller.

Facebook’s stock slump could be self-reinforcing

September 12, 2012

Founder Mark Zuckerberg now admits the social network’s IPO fiasco has hurt morale. No kidding. He hired nearly 60 pct of his 4,000 staff since the stock last traded as low as $18 a share on SecondMarket. That’s a lot of folks potentially poorer who thought they’d be rich by now.

Facebook’s market meltdown is far from over

August 7, 2012

All the red flags apparent at the IPO - overpriced stock, shoddy governance, huge challenges to the business and a damaged brand - still fly today. The most shocking thing about the social network’s $50 bln conflagration of shareholder wealth is that anyone might be surprised.

Nasdaq pours gasoline on Facebook fire

June 7, 2012

The exchange offered brokers a measly and controversial $40 mln to compensate them for over $120 mln of losses derived from the badly botched IPO of the social network. That has galvanized customers and rivals against Nasdaq. Boss Bob Greifeld is starting to look more exposed.

One reason for Facebook IPO mess: Zuck didn’t care

May 23, 2012

From the get-go, Mark Zuckerberg made clear he had little interest in welcoming public shareholders. His voting advantage codified the fact. A strong CEO can temper short-term urges elsewhere. But when he’s indifferent, it makes a failed process like Facebook’s more likely.