“Facebook founder Mark Zuckerberg’s net worth is now at its lowest since his company’s May 17 initial public offering, as the company’s shares hit a new low on Thursday. Facebook shares sagged 6.3 percent as it put millions more up for sale; the day’s drop personally cost Zuckerberg $600 million. His net worth is now down to $10.2 billion, according to Bloomberg, while other Facebook founders have also lost big. Chris Hughes, the new owner of The New Republic, lost $400 million since the IPO, Dustin Moskovitz $2.4 billion, and Eduardo Saverin, $960 million.”
OUCH. Those co-founders have each lost nearly half of their net worth.
Facebook’s stock sucking again, but that’s not the half of it — reports are coming out that two companies that execute trades for traders have lost between $60 and $70 million on botched trades during the Facebook IPO. It gets worse: NASDAQ is legally only liable to cover $3 million in botched trades in a given month (though NASDAQ is trying to get permission from the SEC to pay up to $10 million), so they might have lost a ton of money because NASDAQ screwed up.
No matter what happens, Mark Zuckerberg is still a billionaire. According to an SEC report, the Facebook co-founder sold 30 million shares yesterday, at a price of $37.58, but told investors of his plans before the stock went public. (Early Facebook investor Peter Thiel also sold roughly $633 million in stock himself.) According to our handy-dandy calculator, he cashed out $1.1 billion in the process. The stock is starting to stabilize at $31.89 — down significantly from its opening price but up from yesterday’s close. (via Hacker News)
If someone at Facebook did whisper in the ear of the underwriters’ analysts about the earnings, and those analysts then used this material, non-public information for the basis of rethinking their estimates, and the clients of the banks then altered their orders for Facebook shares while in possession of this information, we have the makings of an insider trading case.Facebook Forecast Scandal’s Big Question: Insider Trading? - CNBC (via felixsalmon)
The bloodletting continues: Facebook’s down by another 6 percent this morning.
For some, a massive IPO that earned them billions of dollars would be the most important thing to happen in their week. For Mark Zuckerberg, it’s a close second. Congrats to the new Mr. & Mrs. Mark Zuckerberg.
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OMG. I got so...
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Tumblr this morning. [h/t anne]
#@#$%!.tumblr.com
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Underwriters prop up Facebook stock to prevent it from tanking on IPO day
On the left side, you see the “bids” that are in the market for the stock. Those are the offers to buy. On the right you see the “asks”, which are asking prices by sellers. Note that next to each bid or ask there’s a “size” which is the size of the offer to buy or sell. Note two things: At the top of the left column, you see lots of bids at $38.00 on various trading platforms. (The BATS exchange, Arca, etc.). What’s more, the size of those bids are HUGE. Hundreds of thousands of shares compared to relatively tiny asks and bids everywhere else.
Should be interesting to see if they’ll still be there to save $FB on Monday.
I’d think that the SEC would have a problem with this. No matter how you slice it, the bottom line is they’re manipulating the market.
To the naked eye, the stock staying at or above $38 looked pretty unusual, so there’s a ton to scrutinize here.
Whew. We dodged a bullet, based on the tweet above. Facebook’s stock closed at 38.23, just barely above its opening price. Click the image to see what you missed.
In the closing rounds of Facebook’s IPO day, and the stock seems to be staying utterly, absolutely flat at its starting price of $38 — a key sign that the stock was either well-priced or that it was sort of a bust. Those of you who picked “no gain” appear to be right.
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