back to article Facebook shares drop 10%, trip NASDAQ 'circuit breaker'

In a speedy response to an analyst's negative assessment, Facebook's stock price dove by over 10 per cent in trading on Monday morning, triggering the NASDAQ exchange's "circuit breaker" designed to prevent over-zealous short sellers from further destroying a company's book value. "What are the shares worth? Perhaps only $15 …

COMMENTS

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  1. Anonymous Coward
    Anonymous Coward

    Just waiting for shareholders to ask for Zucho to go. Then he can be replaced with someone with much less of a clue and Facebook can crash even further.

    1. Chris Miller

      It isn't easy for shareholders to oust a CEO. It's even more difficult when the CEO holds 24% of the corporation.

      1. Anonymous Coward
        Anonymous Coward

        And impossible when the CEO holds more than 50% of the voting rights. Bet the shareholders are feeling like mugs now.

  2. Anonymous Coward
    Anonymous Coward

    iFace

    They definitely need to push Zuk into a CTO position; he's a terrible CEO, people who compare him to Jobs or Gates need a brain MRI.

    Then... Apple should buy them. Cheap as chips for (loaded) Apple to snap them up here and tie the FB user base into the iWorld. The rumours of a Facebook phone make sense, but they don't need to build one: it's the iPhone.

    1. Dazed and Confused

      Re: iFace

      > Then... Apple should buy them. Cheap as chips

      Or wait a few more days and anyone could by them cheap as chips

    2. samlebon23

      Re: iFace

      "Then... Apple should buy them."

      And change the name to: RottenAppleBook

    3. Tom 13

      Re: iFace

      Apple buying FB is the only thing that could cause the stock to drop even faster. I don't buy Apple things because of Jobsian control of them. I'm willing to have an FB account because even though there is data risk, it isn't Apple. If Apple buy FB, I'm gone gone, not just inactive gone.

    4. Michael Wojcik Silver badge

      Re: iFace

      Then... Apple should buy them.

      "Convergence" has never been profitable before. It's sure to be profitable this time!

      What's the incremental value to Apple in buying Facebook? How many Facebook users are interested in and (financially) capable of dancing about Apple's walled garden, but don't already do so?

  3. Anonymous Coward
    Anonymous Coward

    Correction...

    "prevent short selling, including potentially manipulative or abusive short selling, from driving down further the price of a security that has already experienced a significant intraday price decline except by market insiders who have a direct feed into the system and can push this out before we react"

    1. h4rm0ny

      Re: Correction...

      If you follow the share price, your accusation of deliberate manipulation can work. Each disastrous slide in Facebook shares is precipitated by a short-term building up. It has all the hallmarks of big players trying to do a controlled exit from stock ownership. Build it up artificially and thus stimulate enough interest that people will buy your shares and try to slightly offset your losses with shortselling. Don't mistake what I'm saying as being some great conspiracy from start to finish - Facebook has been a disaster for many big investors. But I think there's manipulation going on as those big investors attempt to do damage control as they extricate themselves from the mess.

      Facebook still has a P/E ratio of over 70 which is ridiculously high. If something is that high (that's the Price to Earnings ration), then it's either an inflated bubble or it's the next greatest thing and people know that there are massive profits just around the corner. The latter is not the case with Facebook, which leaves the former.

  4. Anonymous Coward
    Anonymous Coward

    Move to mobile surprised them?

    Do any large companies still NOT block Facebook apart from as a manager perk? My last two places have both done so (plus twitter etc etc). Supposedly to stop staff wasting time - all they do now is sit and stare are their iphones instead of looking at their work monitor. Anyway - their web interface is such a confused mess I suspect the app can't be worse (or can it ? - I've not used it)

    1. Anonymous Coward
      Anonymous Coward

      The app can't be worse?

      Yes, it is, especially on Android.

    2. Tom 13

      Re: Do any large companies still NOT block Facebook apart from as a manager perk?

      Depends on the company and your position in the company. With Social Media now a key segment in the advertising field, many organizations and most companies feel the need to have a "presence" on FB. You can't do that if someone doesn't have access to it. Some even encourage employees to post as a means of raising the profile. Others focus on the time risk and block it.

  5. Anonymous Coward
    Anonymous Coward

    LOL

    see title

  6. amanfromMars 1 Silver badge

    Free market capitalism? You gotta be joking, mister

    "NASDAQ exchange's "circuit breaker" designed to prevent over-zealous short sellers from further destroying a company's book value. " ...... Proof positive that the markets are rigged by the markets trading markets. They do say that incestuous relationships do generate grotesque mutations and intellectually challenged abnormalities, so what can one expect other than a Frankenstein monster of an abused trading floor with idiotic drones going through the motions, as if they know what they are supposed to be doing, rather than doing as they are supposed to, which is something completely different.

    So with those rigged rules, it should take about five days for $15 to hit the books, although who says it will stop at that arbitrary high. It is not as if Facebook makes anything you can buy, and whenever it can sell all your personal secrets to whoever wants to use and abuse them, is it not anything which is going to win many friends in a business which creates parasitic enemies? And posed as a question because it needs asking?

    1. Anonymous Coward
      Anonymous Coward

      @amanfromMars 1

      I can understand this. What have you done with the original amanfromMars?

      1. Blain Hamon
        Unhappy

        Re: @amanfromMars 1

        Given patent wars, Facebook, all of this, I... I don't think it's a case that amanfromMars is suddenly starting to make sense. I think it's more the case that the world stopped making sense, so naturally amanfromMars fits in, now.

      2. Fibbles

        Re: @amanfromMars 1

        I guess he's finally making some headway with that Martian to English translation software.

      3. auburnman
        Unhappy

        Re: @amanfromMars 1

        Yeah, where's the RANDOM CAPS and unexplained A.C.R.O.N.Y.M.S? SMARTR systems, drone wars, the illuminati etc etc.

  7. samlebon23
    Thumb Up

    Very good news.

  8. Anonymous Coward
    Anonymous Coward

    National Lottery - It could be you! (but won't be)

    The stampede for Facebook shares reminds me of when the UK National Lottery started in 1994.

    Everyone in the country excitedly ran out to buy their first ticket, genuinely feeling that everyone was going to win £18M that night. Common sense was sent to Coventry that week.

    There was a stunned silence across the country as Noel Edmonds read out the first numbers and (who'd-a-thunk-it) 99.999% of people who paid a pound won nothing.

    I think the majority of those who bought Facebook shares were people who knew nothing about investing, and simply thought it was an easy cash cow that would make them as rich as anyone who bought Apple shares in 1994.

    Any company who actually make things has the potential to grow because they might make the next big thing and corner the market. Websites are just services, and I don't think it's really possible to offer a unique service that's free at the point of entry. We have MySpace, facebook, Twitter, Google+, Bebo and a host of others. What makes any one of them popular at any one time isn't features, it's just the mood of the public. And the public has a history of 'consuming' a belly full of a social networking site before moving on to a new one for no real reason. Then you get surprising outcomes, such as Google+ not gaining traction despite Google's money and reputation.

    The moral of the story is, if you want to invest in websites and other online services, you need to fund a University start-up that becomes the next Twitter. There's little to be gained jumping on the band wagon later. Otherwise, invest in a company that actually makes something. This is about the investment of your money, not your personal likes and beliefs about websites and brands. You're not supporting a football team, you're managing your life savings for a comfortable retirement.

    1. Tom 13

      Re: National Lottery - It could be you! (but won't be)

      Concur except for this bit:

      Then you get surprising outcomes, such as Google+ not gaining traction despite Google's money and reputation.

      If you take into account the real reputation of Google at the time it launched Google+, it follows that they didn't gain traction. Specifically, they were already being seen as a monopoly player is the advertising and selling personal information market. A web service where they can directly glean even more of your information was a non-starter.

    2. Tom 13
      Happy

      Re: National Lottery - It could be you! (but won't be)

      Oh, and I like that in this context, the "You're not supporting a football team..." works on either side of the pond.

  9. Anonymous Coward
    Coffee/keyboard

    I think Leonard Cohen's "Repent" would be more apt...

    see above

  10. Wanda Lust
    Facepalm

    On bigger fleas backs do littler fleas live

    I don't understand how anyone can believe that I'm going to buy their crappy product when someone metaphorically waves a banner, promoting it, in my face from a bit of a web page that really should be white space.

    Even stoopider are the sheep who think (or in the case of Facebook, thunk) that it's the next (fools) gold rush.

  11. Anonymous Coward
    Anonymous Coward

    Ha! Ha!

    More popcorn over here, please!

    1. Puzzeled European
      Thumb Up

      Re: Ha! Ha!

      And some more for me too, please!

  12. IGnatius T Foobar
    FAIL

    Facebook has no value

    The market is trying to tell the world what the world ought to already know (but doesn't, because the world is stupid) -- that Facebook has no value. It's just a web site -- and not a very good one at that. Facebook has no value. It's a passing fad, of which many are already tiring. The sooner it goes away, the better. And the stock price is reflecting that. Facebook has no value.

    1. Anonymous Coward
      Anonymous Coward

      Re: Facebook has no value

      I think you misunderstand the article, Facebook has "a" value however when the money it's worth on the markets is less than the money it makes there's an issue, that might be $1 a share, $15 a share but it's not the IPO price, millions of people love Facebook it replaced may other systems that people also loved, you might not love it, but if you want to share pics with friends, start discussion groups, have a blog etc. then it's there, free, very popular and all in one place, stamp collecting might not be for you, but that doesn't mean it has "no value"

  13. The Alpha Klutz
    Megaphone

    NASDAQ is like a 50 foot tall dick

    with thousands of guys standing at the base, pumping it.

  14. ratfox
    Megaphone

    The worst is yet to come

    If I understand correctly, almost half of the stock is held by employees, who can only start selling it in a few weeks.

  15. The Alpha Klutz

    is it just me?

    I typed "Zuckerberg is a " into google and my suggestions are; douche, thief, rockefeller, jerk

    hmmm they all fit so well

    1. The Alpha Klutz

      Re: is it just me?

      if you add an "s" you get scumbag and sociopath. I fucking love Google.

  16. Local G
    Devil

    @amanfromMars1 "Proof positive that the markets are rigged by the markets trading markets"

    If this is correct, any day we can expect the biggest short squeeze in history..

    1. amanfromMars 1 Silver badge

      Re: @amanfromMars1 "Proof positive that the markets are rigged by the markets trading markets"

      Yes, you most certainly can, and sooner rather than later. Such is inevitable and guaranteed whenever intelligence leads with information that powers controlling powers ........ and simply alters complexities in human perception/virtual machine programming.

      If you have a shirt, bet on IT. You cannot lose in a win win situation which dares share IT cares ....... and is light years way SMARTR than the average bear pit and raging bull arena.

      Deal with IT Nicely ....... or Perish Badly, is the only stark choice available in SMARTR Circles and Super IntelAIgent Networks, and the wrong choice made there ensures All and Any Access to Power Controlling Powers is Self-Denied, for One has proven Oneself to be Unworthy of Command and Control of Computers and Communications in Live Operational Virtual Environments with Creative Cyberspace ZAPPs ....... Zeroday Application of PrimedD ProgramMiNGs.

      You do know what D Programs are, yes? ...... Google D to find out is the simple answer, no?

      1. awomanfromVenus
        Thumb Up

        Re: @amanfromMars1 "Proof positive that the markets are rigged by the markets trading markets"

        Horrayyyyy!!!! He's back to... er..... what passes for normal for amfM

      2. Local G
        Alien

        Re: @amanfromMars1 "Proof positive that the markets are rigged by the markets trading markets"

        "Now, what news on the Red Rialto, amfM?"

        What do they say about our earthly governments printing money to buy their banks' toxic assets and bail them out of their mistakes, governments which do nothing for their citizens and their bad mortgage, credit card and small business debt?

        Will future battles be between the powerful banks of different countries jousting with weapons of foreclosure and worthless currency? Is that why they're being strengthened now while people are still being turned out of their homes?

        Tell us what we should do when the reverse repurchase agreements start flying? And when liquid assets fail to discharge their covenanted duty?

        (here the signal breaks off)

  17. mIRCat
    Thumb Down

    Small problem.

    He over valuated the share price.

  18. JaitcH
    Thumb Down

    I'll tell my wife to hold the new wallpaper order ...

    should be lots with FB printed on it soon.

    And poor old Zuxker*ucker hasn't cashed his in yet! Poetic.

  19. MachDiamond Silver badge

    How do they make money?

    The people I know (barely these days) with a Facebook addiction aren't sending in their life savings like it was THE church. They use it for free and waste their lives away posting yet more over processed pictures of their dogs, fenceposts, sparrows and desert race buggies leading to alienation of friends and family not so disposed to the addiction and a slow spiral down from productive human to welfare recipient. I see FB as a parasitic growth on society and will slowly fade as the host dies. Companies that feel they have to "get with this social media craze" would probably be better served by hiring educated and well spoken customer service people to respond to their customer's needs rather than quoting the "like" totals at the end of the week. If the 'like" button was balanced with a "you suck, go die" button, companies with a presence on social media sites may get better feedback on their customers mood. Of course, this is not what they are after.

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