Andrews Ross Sorkin wrote apiece for the NY Timesthat was just farcical . He put the blame straightforwardly on the back of the CFO of FB . speak about getting it 180 academic degree wrong .
It ’s easy to dump on the Facebook IPO as its store damage continues to fall and fall and decrease . “ Facebook mess up ! ” shout everyone . But did it really ? Mark Cuban pronounce no .
Have you ever been to an auction where the selling party told a buyer to slim their terms because they were worried that the item might not hold its value ? Neither have I. If the CFO of Facebook come on SharkTank and told me that he was able to trade his portion to the public for $ 38 a share , but turned down the chance , I would squelch him for being an idiot .
Facebook was able to invoke about 10 BILLION DOLLARS in this initial offering . The CFO ’s job is not to negociate shareholder portfolios . His occupation is to help Facebook win . I do n’t know about you , but putting 10 BILLION dollar mark in the bank in my sentiment is one way to help it come after .
Whose job is it to help handle the portfolios of FB investor ? If an investor does n’t manage their own portfolio , the factor who sell them the stock are responsible . It ’s their chore to say the course catalog if you as an investor are too work-shy to do so . It is the Book of Job of the broker to help the investor sympathize the value of the company and make a buying decisiveness . No interrogative sentence that there are a mess of brokers out there that did not do their job .
As far as traders who bought the stock hope for a pop : No one cares about them . Seriously . You trade , you cognize you are going to lose on trades . That is how thing work .
I bought and sold FB shares as a TRADE , not an investment . I lost money . When the stock did n’t bounce as I thought / hoped it would , I realized I was improper and got out . It was n’t the fault of the FB CFO that I lost money . It was my fault . I know that no one sells me shares of stock certificate because they expect the toll of the stock to go up . So someone see me come and they sold me the stock . That is the way the stock grocery works . When you pose at the trading end you look for the gull . When you do n’t see one , it ’s you . In this case it was me .
If the end of the company is to maximise the cash receive from the IPO , then the CFO should absolutely price the blood to maximise the riposte . If the goal of the companionship is to get a 1 day papa to make a PR splash , that is a completely different strategy . It obviously was not the strategy of Facebook . Facebook maximized the cash useable to it . They have been very clear that they will not make out the stock , they will bring off the caller to reach the goals they have been very open and honest about . Good for them .
Andrew did seek to make one cogent debate that Facebook faced the risk of employees leaving because their option were underwater . Apparently Andrew forgot that companies can re - price their option . Problem solved .
I willleave you with this article from a few years backwhen Google was at a similar point , having lost more than TWICE the grocery cap rating that Facebook has lost to this item .
Mark Cuban is the owner of the Dallas Mavericks , and one of the most successful engineering investor around . He regularly blog about the technical school industry at Blog Maverick , and he has an ebook — How to Win at the Sport of Business — useable atAmazonandiTunes . Oh , and he ’s onShark Tank .
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