It's Zuck's World We're Just Living In It
Doesn’t it seem the Facebook IPO was just yesterday? And yet here we are at the company’s third earnings release, which brings promising news. In fact, we’re a little surprised the Facebook execs on the earnings call didn’t punctuate their remarks with jazz hands.
That’s because, 23 percent of the company’s $1.33 billion in Q4 ad revenue came from mobile. That’s a jump from Q3, when it was about 14 percent. And it’s a big jump from last year, when it was basically zero. Overall ad revenue was also up 40 percent.
“Today there’s no argument — Facebook is a mobile company,” crowed Zuck in this afternoon’s earnings call.
This morning, Dealbook honcho Andrew Ross Sorkin made his case for the villain in the melodrama that is Facebook’s bungled IPO: CFO David Ebersman, who gave the $38 offering price the go-ahead. His excessive optimism–so goes the argument–flooded the market with overpriced shares, which have since lost half their value, and now there’s no upswing in sight, and that means Mr. Ebersman, at the very least, deserves a public calling-out.
Well, Mark Cuban thinks that’s bullshit.
In a new blog post titled “Facebook Handled Its IPO Exactly Right,” he calls Mr. Sorkin’s conclusion “180 degrees wrong” then goes on an absolute tear in defense of Facebook’s IPO pricing. Short version: It’s not David Ebersman’s job to make sure you don’t lose money betting on Facebook.
IP Uh Oh
It’s been almost four months since Facebook’s alarmingly botched IPO, and yet its specter still haunts the markets. On Friday, $FB stock closed at $18.06 a share, dropping a sharp 5.40 percent in a single day–the worst drop a tech company experienced that day. (Comparatively, Zynga–which has been widely panned for its parachuting stock–only dropped 3.11 percent.) To date, Facebook has lost $50 billion in market value since its IPO.
And yet, despite much talk of banks and underwriters and Facebook’s nascent leadership team, we’ve yet to pin down a real target for our IPO ire. Luckily, Dealbook’s Andrew Ross Sorkin thinks he’s found the likely culprit: Facebook CFO David Ebersman, whom you’ve probably never even heard of:
IP Uh Oh
It’s been less than a week since Facebook debuted on the public markets. But each day, it seems, unearths new contenders for another round of the Facebook IPO Blame Game. (Play along at home!)
While Congress plans its investigation into underwriters like Morgan Stanley, Dan Primack dropped an interesting perspective in his Term Sheet newsletter: Blame the “adults.”