Thursday, May 24, 2012

Facebook Inc. Fiasco Plunges Own Stock To -19.80 At Nasdaq Stock Market

Facebook facing financial loss for 2012 and considering moving stock to the NYSE.

By H. Nelson Goodson
May 24, 2012

New York - Facebook Inc. (FB) estimated worth last week was at $104 billion. On Friday, FB price was at $38 per initial public offering share, which made $19 million in IPO stock at Nasdaq Stock Market when FB closed slightly higher by 23 cents.
By Tuesday, it lost an estimated $4 billion. FB told bank creditors of their financial trouble due to having problems with selling adequate mobile Ads. The creditors then told rich FB stock investors about FB's problem who immediately began to get rid of their FB stock by selling it.
Small public stock buyers never got the information from FB and the projected fall of stock price.
On Wednesday, FB stock closed up by $1, at $32, nearly 16% lower than the IPO price, thus stock fell -19.80 points.
Facebook CEO Mark Zuckerberg on Friday got rid of his shares and made $1.13 billion. By selling off 30.2 million FB shares at $37.58 each, he was able to save $174 billion.
Other reports, FB had lost over $20 billion and is considering moving the stock to the New York Stock Exchange.
A civil lawsuit was filed in a New York federal court by three investors and is requesting a joint class-action suit against FB for alleged inside trading that involved providing Morgan Stanley and other underwriters information about its projected loss of revenue for 2012. The FB information was also provided to preferred major investors and not to the majority of stock buyers and investors. The FB information was omitted from the Registration Statement and/or Prospectus, according to the federal lawsuit.
The major investors began to get rid of their stock at cheaper prices. Morgan Stanley says, it will reimburse FB investors some of the losses from the fiasco.
A federal investigation is being launched into FB's actions in the stock market.

Connected by MOTOBLUR™ on T-Mobile

No comments: