Facebook has now gone through its first trial by fire as a public company, slightly exceeding revenue expectations (with $1.18 billion) but showing a big loss in its first reported quarter ($157 million). Facebook shares were pummelled in after-hours trading; the company’s market cap has been slashed in half in just 10 weeks.
This is a bad, bad situation for Facebook’s early shareholders, 97% of whom are individual, retail investors – unlike those at the other big tech titans, which are majority-held by institutions: Google (68%) and Apple (67%). That Facebook’s percentage is so high suggests that Facebook is a stock for the masses. The masses need a hero.
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