Facebook’s post-IPO performance has been poor. But is it so poor that it will hurt the prospects for other startups?
The short answer: Almost certainly.
This is the subtext of the wave of anger and disappointment over Facebook’s stock slide over the past few weeks.
First, let’s get something straight: Facebook did well for itself and its investors, although its bankers and top executives allowed some embarrassing, unethical, and possibly illegal things to happen — notably, sharing detailed revenue projections with key investors that weren’t available to the broader investing public. The company is now faced with several state government investigations as well as two shareholder class-action lawsuits, which will cause problems for it and its executives.