Facebook Mishandled Novice Interest in Its Stock, Experts Say
A major factor in Facebook's botched IPO in May 2012 was interest in its stock by uninformed investors who knew the brand but didn't know about the company's financials, experts said this afternoon at a panel on technology IPOs at Bloomberg's Next Big Thing Summit in Half Moon Bay.
A major factor in Facebook’s botched IPO in May 2012 was interest in its stock by uninformed investors who recognized the brand but didn’t know about the company’s financials, experts said this afternoon at a panel on technology IPOs at Bloomberg’s Next Big Thing Summit in Half Moon Bay.
“There are certain companies where you’re going to have unlimited unsophisticated demand, and clearly Facebook was an example of that. In those cases I’m a strong advocate of another kind of IPO,” said Lise Buyer, a principal at Class V Group, which advises companies on going public.
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