Its Financial Future In Question, Facebook Tries To Tell A Different Story
Fellow at the Rock Center for Corporate Governance Vivek Wadhwa is quoted by Steve Henn of NPR's All Tech Considered in the following broadcast on Facebook's transition into being a public company.
On its first day as a public company in May, Facebook's stock traded for more than $40 a share. On Thursday, investors could pick up a share for less than $20. Facebook has lost nearly half its value during its first few weeks on the Nasdaq. Institutional investors such as Fidelity are selling their stake. Facebook executives are now desperate to change the conversation about the company.
For years the vast majority of business stories about Facebook seemed to describe some kind of unstoppable force. A company that was doubling in size every year — with members who spent more time on the network month after month, and a user base so large it rivaled the most populous nations on Earth.
"So Facebook is now in the ranks of the big companies, and essentially it'll stop innovating the way we've seen innovation before," says technology researcher Vivek Wadhwa.