The Facebook IPO, its woes and consequent downgrading by the underwriters, reminded me of exactly how the financial markets have treated Greece.
When the financial crisis broke out at the end of 2009, those at Goldman Sachs quickly turned around and speculated against the very country they helped ascend the Eurozone in 2000. The bank made billions by betting on the collapse of the Greek economy.
This act, and subsequent downgrading of Greece, all while it was in the process of restructuring its debt via the issuing of bonds, does not differ from what Morgan Stanley and other underwriters just did with Facebook.
Frustrated by the fact that he’s not being given the much-needed break in order to allow his company’s stock to shine through, Facebook CEO Marc Zuckerberg must be feeling like a Greek at the moment.
With FB currently down 15% since the IPO, the backstabbing by its own underwriters less than 24 hours of trading later proves that there is no such thing as allies in the world’s financial markets.
Meanwhile, the future of a country accused of everything and recognized for nothing is at stake, but its citizens can vote, at least, who will lead them through their subsequent battle of Eurozone, in the upcoming elections on June 17th.
On the other hand, Marc Zuckerberg, sole “dictator” of his corporation cannot do the same, but he surely has been feeling like a Greek since the Facebook IPO.
Very interesting comparison, quite plausible actually..
But I think you might have actually got it a bit wrong.
Zuck and the rest of em cashed out quite a bit on day one at $38, so while he might be under allot of pressure as to why his stock is doing so bad, the guys at the top (him mainly) made their bucks.
In fact they timed/planned this IPO pretty much perfectly, they increased the amount of shares, raised the asking price and got the massive media attention they wanted, all so that they could cash out at a higher price, its not only their underwriters who made good money :]
But yeah, I’m not financial expert, just the way I see it.
I read this headline and thought maybe you had some insight into what he was getting up to on his honeymoon. Disappointing.
Jonno – No CEO worth their salt would ‘cash in’ and let the company burn to the ground. Marc Z. cares about his company’s image and the IPO was a flop.
Kevin – Have a glass of Greek wine 🙂 http://www.guardian.co.uk/money/2012/may/22/wine-awards-greece-raise-glass