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What really happened on May 18, 2012, with the botched IPO of Facebook Inc. (NasdaqGS: FB)?
Well, the Securities and Exchange Commission (SEC) just released its version of events under the guise of Administrative Proceeding File No. 3-15339.
And "In the Matter of THE NASDAQ STOCK MARKET, LLC and NASDAQ EXECUTION SERVICES, LLC (Respondents)" the SEC slapped wrists and fined the fools $10 million for screwing up Facebook's IPO - the largest-ever fine imposed on an exchange.
Of course, it's good reading. But there's something missing.
It's called "the truth."
Facebook Stock Just Hit a New Low for 2013
Missing amid the numerous stock market milestones and seemingly unstoppable rallies since the start of the year is Facebook stock.
Tuesday marked the 20th consecutive Tuesday the Dow Jones Industrial Average closed with a gain. And, the Standard & Poor's 500 Index, up 16.4% year-to-date, finished just nine points shy of its all-time high of 1,669.16 hit mid-month.
Meanwhile the Nasdaq, Facebook's (Nasdaq: FB) home exchange, has gained 4% in May and 16% this year.
In contrast, Facebook stock is down some 10% year-to-date.
Facebook Stock Ends Disappointing Year One; Any Shot at a Comeback?
One year ago, Facebook stock (Nasdaq: FB) made its trading debut in one of the most highly anticipated initial public offerings ever.
While it's okay to offer a congratulatory happy anniversary, it's been anything but a honeymoon for the company and investors.
Some 421 million shares were sold, raising $16 billion, giving Facebook a whopping $104 billion valuation.
Then the disastrous story began: Shares were priced at $38, opened at $40, and then, within 10 market hours after the pricing, Facebook stock flailed. Technical glitches at the Nasdaq caused a delayed open, late executions and reports, and mispriced trades.
Lawsuits are still pending.
If this Works, Facebook Stock Could be the "Buy of the Decade"
Facebook stock is one of the most controversial stocks in existence today.
With one billion users, investors have been waiting to see if Facebook's business model can pay off, especially after its IPO tanked.
Today, Money Morning's own e-commerce director, Bret Holmes, is going to give you the inside scoop on Facebook stock. Not some theoretical financial analysis, but what the future looks like for Facebook, from a guy who understands e-commerce and can explain how Facebook stock could be the "buy of the decade" for investors.Click here to watch the interview.
Four Reasons Facebook Stock Could Tumble After Earnings Report
Facebook stock rose nearly 3% Tuesday to come within $11 of its IPO price - but a disappointing earnings report could send shares plunging if the social media giant doesn't show healthy improvement.
One of the biggest things to watch when Facebook Inc. (Nasdaq: FB) reports Q1 earnings after the close Wednesday will be how the company is managing the transition to mobile.
Facebook Stock Risk: New Social Media Apps Luring Teens Away
Facebook Inc. (Nasdaq: FB) is starting to get a taste of what it means to be the king of the social media hill.
Small and more nimble competitors with novel ideas have sprung up and begun to entice young users away from the No. 1 social media platform - a bad omen for Facebook stock, which 11 months after its IPO still trades 29% below its offer price.
According to Piper Jaffray's annual "Taking Stock of Teens" survey, teens are spending less time with Facebook and more with a vast array of alternatives.
The survey showed that just 33% of teens consider Facebook "the most important social network" compared with 42% last year.
Last month, the creator of social photo album app Albumatic, Adam Ludwin, conducted a focus group of users under 25.
"They gave me the typical teenage response: 'We're bored with Facebook,'" Ludwin told Business Insider.
Anyone who doubts how quickly a social media company can become yesterday's news need only look at MySpace, a once-dominant social media site that lost a third of its users in 2010 mostly as a result of Facebook's growing popularity.
"History is not on Facebook's side when the trend starts to move in the wrong direction," Piper Jaffray analyst Gene Munster told MarketWatch.
What is Facebook Home – And Will it Do Anything for Facebook Stock?
The much anticipated announcement from Facebook today (Thursday) has left us investors with two questions.
The first, what is Facebook Home?
The second, is this finally the development that CEO Mark Zuckerberg needs to rally investors behind Facebook stock, and lift it back above its IPO price of $38?
The social-networking giant Thursday unveiled Facebook Home, a customized homescreen for Android smartphones. Facebook Home highlights all things Facebook - a dream come true for anyone who loves the social media tool.
Could Another Go at a Facebook Phone Actually Work?
A Facebook phone could be in the works, serving as the company's latest bold attempt to increase revenue and make money from its one billion users.
The social media giant sent out invites last week to a press event, "Come See Our Home on Android." Facebook Inc. (Nasdaq: FB) will host the event at its Menlo Park, CA headquarters Thursday.
Rumors state the mobile device will use customized software that's a version of Google Inc.'s (Nasdaq: GOOG) Android 4.2 OS. The software will dominate a user's home screen. Updates and information from a user's Facebook account will be posted constantly.
Industry insiders believe the company is working on the smartphone in collaboration with Taiwan's HTC. This is the second time the companies have collaborated on a Facebook-focused phone - with the first attempt only lasting a few months.
Could it be that second time's the charm?
Facebook IPO Deal Leaves Wall Street Seeing Red
The U.S. Securities and Exchange Commission on Monday approved Nasdaq's plan to pay $62 million in compensation to brokers for mishandling the Facebook IPO. The Nasdaq missteps during Facebook's (Nasdaq: FB) debut cost Wall Street a collective $500 million and firms have fought to recoup those losses.
The amount was cleared by the SEC after Nasdaq offered to pay more than is allowed under its existing bylaws. As a self-regulatory organization, the Nasdaq enjoys certain legal protections which could have resulted in a significantly smaller settlement.
Nasdaq proposed the voluntary $62 million as more firms claimed that the exchange misrepresented facts of what went wrong in trading that day. The amount is much more than the $3 million cap its rules permit for technical glitches.
Not everyone's on board with the decision. Citigroup Inc (NYSE: C) and UBS AG (NYSE: UBS) urged the SEC to reject it, saying losses within their market-making units exceed $62 million. In fact, Citigroup raised the immunity argument last August in a letter to the SEC.
"Market participants suffered hundreds of millions of dollars of losses as a result of Nasdaq's profit-driven conduct prior to and during the Facebook IPO, not a result of protected regulatory activity by Nasdaq, or routine system failures. Nasdaq should not be permitted to hide behind regulatory immunity," Citi wrote in a letter to the SEC.
UBS, which claims to have lost more than $350 million, told the SEC brokers should be made whole. Many agree.
"Why should the banks and brokers be left holding the bag for Nasdaq's snafus?" Scott Sales, a lawyer at Paul Hasting LLP who handles corporate listings and is not involved in the settlement, told The Wall Street Journal last month.
The SEC acknowledges the proposal won't compensate for all losses, but added it provides "significantly more compensation for eligible claims, outside of litigation, than would otherwise be available."
Should Investors Dump Facebook Stock for LinkedIn?
LinkedIn Corp. (Nasdaq: LNKD) just reported fourth-quarter earnings that blew away Wall Street estimates, a nice addition to its already impressive resume -- and one that is making LNKD much more attractive than Facebook stock.
LinkedIn earned 35 cents a share, nearly triple the 12 cents earned in the same quarter a year ago. Net income soared 60% to $11.5 million, up from $6.9 million. Revenue jumped 81% to $304 million up from $168 million. Analysts were looking for 19 cents on revenue of $280 million.
U.S. markets accounted for 62%, or $189 million, of Q4 revenue. That was down 2% from the previous quarter. But international growth was robust, kicking in $114.6 million to LinkedIn's bottom-line.
CEO Jeff Weiner called 2012 a "transformative year."
"We have exceeded our own expectations by a wide margin," CFO Steve Sordello said during a conference call.
Shares surged $12.11, or some 10%, to $136.20 after hours Thursday following the report. The rally continued Friday with shares climbing another $26, or almost 21%, hitting an all-time high of $150.25 intraday.
Since its May 2011 initial public offering at $45, shares have more than tripled.