Pre-IPO, SEC Smelled Facebook's Mobile Flaws
Prior to Facebook’s IPO, it now appears as if the U.S. Securities and Exchange Commission was after the company to explain how a user shift to mobile devices could impact profits. “Assuming that the trend toward mobile continues and your mobile monetization efforts are unsuccessful, ensure that your disclosure fully addresses the potential consequences to your revenue and financial results rather than just stating that they ’may be negatively affected,’” the agency wrote to Facebook in late February, according to a document made public on Friday.
As Bloomberg points out, “Facebook amended its IPO filing on May 9, about a week before its $16 billion sale, to say that its revenue may be negatively affected by users accessing the site on mobile devices rather than personal computers.” What’s more, the social network said its ability to make money off mobile users was “unproven.”
Since then, the company has not experienced the dream IPO for which many assumed it was destined. Rather, shares have fallen about 24% since the stock began trading at $38 on May 18 -- “in part,” as Bloomberg notes, “because of concern about the company’s mobile strategy."
Recent Around the Net In Online Marketing Articles
-
"Social Expressions" Startup Urturn Raises $13.4M May 22, 11:48 a.m.
Urturn -- a so-call “social expressions platform” -- just closed a $13.4 million Series A funding ... -
Apple To Embrace More Social Networks May 22, 11:47 a.m.
Apple reportedly plans to give third-party social networks -- including Flickr and Vimeo -- a bigger ... -
Twitter Bows "Lead Generation" Ad May 22, 11:46 a.m.
Twitter on Wednesday debuted what it’s calling a “lead-generation” ad product. At first glance, “It looks ... -
Google Adds "Conversational Search" To Chrome May 22, 11:45 a.m.
As was widely expected, Google has added its new conversational search feature to the latest version ... -
Microsoft Bows Xbox-Exclusive Series May 21, 12:15 p.m.
Microsoft this week debuted “The Music Room” -- a new interactive TV series that will be ... -
Fab Could Flaunt $1B Valuation May 21, 12:15 p.m.
Fab Inc. is reportedly close to raising $250 million to $300 million, which would value the ... -
Yahoo Redoes Flickr May 21, 12:15 p.m.
On the heels of its agreement to buy Tumblr, Yahoo on Tuesday relaunched photo service Flickr. ... -
Apple Losing Luster Among Mobile Users May 21, 12:15 p.m.
Adding to suspicions that Apple is losing its luster, new data shows that customers are not ... -
Chinese Hackers Pose New Threats May 20, 11:25 a.m.
After a short pause, Chinese hackers have reportedly resumed their attacks on various U.S. targets, including ... -
YouTube Users Upload 100 Hours Of Video Every Minute May 20, 11:23 a.m.
In honor of its eighth birthday, YouTube has released some viewership data worth celebrating. “Most staggeringly, ...
Be the first to comment on "Pre-IPO, SEC Smelled Facebook's Mobile Flaws "
Leave a Comment