/// Out, Damned Stock! Web 2.0 IPOs Hope for an Amazon Ending (While Fearing a Pets.com Fate)

August 19, 2012  |  All Things Digital


Now is the summer of a social network’s discontent, made glorious by this tweet of snark: “Facebook Unlock happens during ‘Shark Week.’ Shorts Circling.” All the clouds that low’red upon this house of daily deals in the deep bosom of mockery buried: “Watching #Groupon trade today is like watching an Olympic-class limbo competition.” And the world is grown so bad for social gaming, that wrens make prey where eagles dare not perch: “I heard Zynga is building a new slide at their HQ based identically on their stock performance.” With all apologies to William Shakespeare’s “Richard III,” it’s been a very bad week for the trio of the highest profile Web 2.0 companies — Facebook, Groupon and Zynga — that just a year ago were flying pretty high. Too high, as it turned out, and now they have been felled low — at least by Wall Street investors, who have been furiously bidding down the companies to valuations unimagined until recently. Naturally, the noise levels on the situation ratcheted up heavily as last week drew to a close, with innumerable media stories chronicling the woeful stock situation. Facebook — due to worries about revenue growth, mobile problems and a pile of unlocked shares flooding the market — hit a record low since its May 18 offering, down 50 percent to $19.05 on Friday. Zynga, which also showed weaker than expected results recently and with concerns about the lasting power of its social games — is now at $3, which is down 69 percent from its IPO. And Groupon — perhaps the biggest punching bag of all for the longest time — is off 82 percent to $4.75 on Friday, with uncertainties growing about its core coupon business. And it stands, some are predicting an even worse performance tomorrow and in the weeks ahead. Again, borrowing from the Bard: “The worst is not, so long as we can say, ‘This is the worst.’” Now, the most pressing question for the three companys’ execs, employees and shareholders is when there might be some respite for the weary. Unfortunately, most think that will be quite some time. As the New York Times’s Peter Eavis put it well: Indeed, each of the companies that have gone public in recent months has needed one main magical story … But the nightmare begins when investors stop believing in that central story. Earnings don’t have to be terrible, and they haven’t been at the hardest hit firms — Facebook, Groupon and Zynga, the online game company.

Visit link:
Out, Damned Stock! Web 2.0 IPOs Hope for an Amazon Ending (While Fearing a Pets.com Fate)


newEngagebanner

Leave a Reply

/// Out, Damned Stock! Web 2.0 IPOs Hope for an Amazon Ending (While Fearing a Pets.com Fate)

August 19, 2012  |  All Things Digital


Now is the summer of a social network’s discontent, made glorious by this tweet of snark: “Facebook Unlock happens during ‘Shark Week.’ Shorts Circling.” All the clouds that low’red upon this house of daily deals in the deep bosom of mockery buried: “Watching #Groupon trade today is like watching an Olympic-class limbo competition.” And the world is grown so bad for social gaming, that wrens make prey where eagles dare not perch: “I heard Zynga is building a new slide at their HQ based identically on their stock performance.” With all apologies to William Shakespeare’s “Richard III,” it’s been a very bad week for the trio of the highest profile Web 2.0 companies — Facebook, Groupon and Zynga — that just a year ago were flying pretty high. Too high, as it turned out, and now they have been felled low — at least by Wall Street investors, who have been furiously bidding down the companies to valuations unimagined until recently. Naturally, the noise levels on the situation ratcheted up heavily as last week drew to a close, with innumerable media stories chronicling the woeful stock situation. Facebook — due to worries about revenue growth, mobile problems and a pile of unlocked shares flooding the market — hit a record low since its May 18 offering, down 50 percent to $19.05 on Friday. Zynga, which also showed weaker than expected results recently and with concerns about the lasting power of its social games — is now at $3, which is down 69 percent from its IPO. And Groupon — perhaps the biggest punching bag of all for the longest time — is off 82 percent to $4.75 on Friday, with uncertainties growing about its core coupon business

View original post here:
Out, Damned Stock! Web 2.0 IPOs Hope for an Amazon Ending (While Fearing a Pets.com Fate)


newEngagebanner

Leave a Reply