Facebook, Zuckerberg sued over IPO

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The lawsuit charges the defendants with failing to disclose "a severe and pronounced reduction" in forecasts for Facebook's revenue growth in the run-up to Friday's IPO.

Facebook, Zuckerberg sued over IPO | Internet & Media - CNET News



The Facebook Fallacy
For all its valuation, the social network is just another ad-supported site. Without an earth-changing idea, it will collapse and take down the Web.
Tuesday, May 22, 2012 - By Michael Wolff
http://www.technologyreview.com/web/40437/?p1=A1
  • Profile picture of the author Kay King
    That article would have had more punch had it been published before the IPO - wouldn't it? It's a convenient stance after the fact.

    The lawsuits are flying - but would they be if Facebook opened at $38 and immediately climbed up and up in value? Nope.

    There were mistakes - technical glitches - bad judgments....but the main complaint is "I bought into the hype for this over-priced IPO and lost money".

    No sympathy here.
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  • Profile picture of the author KimW
    I'm with Kay here, and I didn't even read the article.

    If someone bought into the hype and lost money,they have no one to blame but themselves.
    Seems everyone wants someone else to think for them,and like Kay said, if it had made them big bucks,they'd be happay as a pig in a sty,but instead since they lost money,now they need someone to be responsible,except for themselves. :rolleyes:
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  • I thought a 100 bn dollar estimate was a very high hype, and figured something might come of it - but you never know nowadays...
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  • Profile picture of the author Kay King
    The change that needs to happen is to stop selling air.

    We see it on this forum where people join and immediately expect to be told where to pick up their money.

    PPC ads are great to help people find the products they want - but are manipulated to the point of ridiculous. That's mainly because anyone can place or display those ads and not everyone has the customer's interests at heart.

    To me, social media is another extension of the rainmaker syndrome - where people create a social life and friends out of "air" or start to believe every bathroom break they take is worthy of an announcement.

    The internet is capable of providing insight and depth of knowledge beyond anything previously seen - but increasingly is used as a shallow "me" medium.
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  • Profile picture of the author KimW
    Kay,
    we also see it where the people join just to sell WSOs nowadays.
    So many "gurus" are selling the idea of making money just on this forum alone.
    You go in the WSO section and you will see members only a couple months old who are calling themselves "trusted warriors" with the greatest offer ever made and over "1 million sold in the first 48 hours", blah blah blah.
    And of course they have the small fanatical group of followers that have "bought the last 15 wsos" put out by the guy. Probably the same 2-3 guys under many accounts.

    Interesting that you say it is being used as a shallow "me" medium. The 80's were called the "me decade", but I think today has gotten it beat by a mile.
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    • Profile picture of the author MissTerraK
      From what I gathered from watching the financial report on the news this morning is that the big stink is that not the same information was given to everyone.

      The insiders got a heads up on the forecast for Face Book's declining financial growth projection while the ordinary guy didn't. They say the information should have been available to everyone and because it wasn't, that's illegal.

      I, on the other hand, say there's no excuse! I mean who hasn't heard the adage, A fool and his money soon part?

      Your money's gone, kiss it goodbye Sucka!

      Terra
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    • Profile picture of the author Dennis Gaskill
      Originally Posted by Kay King View Post

      The internet is capable of providing insight and depth of knowledge beyond anything previously seen - but increasingly is used as a shallow "me" medium.
      Originally Posted by KimW View Post

      Interesting that you say it is being used as a shallow "me" medium. The 80's were called the "me decade", but I think today has gotten it beat by a mile.
      That's one reasons I called this "the age of vanity" in piece I wrote about 3 months ago.



      Not surprised by the lawsuit though. Won't be surprised by any investigations either.
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      Just when you think you've got it all figured out, someone changes the rules.

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    • Profile picture of the author salegurus
      Originally Posted by KimW View Post

      Kay,
      we also see it where the people join just to sell WSOs nowadays.
      So many "gurus" are selling the idea of making money just on this forum alone.
      Yeah, that too.
      What i don't get is the endless stream of people who are still attracted by the hype, claims made, earnings screenshots etc.

      If there's a market for it....
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  • Profile picture of the author Steven Wagenheim
    Originally Posted by Ken_Caudill View Post

    This is really telling:

    " It is the pay per click ad that is the root of all evil. And it all started with Google. When these little links started popping up like wild mushrooms all over our search results we didn't think much of them. They seemed harmless. Then they slowly started spreading all over. Soon we learned that clicking on one of these links would take us into the weirdest corners of the Internet, deep into the land of embarassing pop-ups, scams, sites that took us hostage and simply refused to let us leave with endless pop up asking us if we really wanted to leave, freezing up our computer. They promised free iPods and iMacs if you clicked on them, tried to get us to try weird pills, diets and pumps. Smiley faces screaming that we'd won God knows what late at night, making us jump in our chairs. And slowly but surely they gained a reputation for being just plain shady. Surveys for cash, lottery winnings...I've never seen a respectable product advertised on a pay per click ad. Ever. Never have I ever thought "Hey let's check out these ads, let's see what deals I can find today!" because they really aren't legitimate ads, they're schemes. They have no credibility, link upon link pushing you, taking you to weird ebook sites when you click on them. They are an annoyance. They are misleading almost 95% of the time and they all scream "click me!" asking you to give up control and follow them to their lair where they can push some RX pill from Canada on you.

    And they have kept and keep spreading. So now when we do a Google Search it is like looking through the trash. Site upon site filled with these meaningless links as far as the eye can see making web pages ugly and useless. The entire Internet is filled with these sites. We will never get rid of them. Everyone avoids these links like the plague because we've been down that road before and we know better. They make the Internet look ugly. They make relevant information harder to get to. They make us waste time. They make it so that you have to be on the lookout every time you browse the web because they are out to get you. They will fill your PC with viruses. Who knows why. It never should have been this way. They should have never existed.

    Nothing can disturb your browsing experience more than clicking on one of these ads by mistake. Anger, frustration and curse words ensue. We've become masters at avoiding them and ignoring them. We don't want to see them, these little links taunting us trying to trick us with their lies. We know no one ever won that free iPhone. It's just the Internet messing with us.

    All I have to say about this is: Thank you Google.

    And so it is that when Facebook started using these little pay per click ads they never had a chance. We no longer saw them as something that could provide useful information, they were just a scam, another obstacle between us and our information. A little banner trying to trick us into giving out our credit card information. They couldn't be trusted. We will never trust them. This is why they have lost all hope of being a viable source of reliable information. They did it all themselves with Google helping them along the way. They have no one else to blame."


    a comment from someone called meebits at:


    The Facebook Fallacy - Technology Review




    There needs to be a serious change in the way we sell on the net.
    Ken, I don't give out a lot of thanks these days but your response is dead on
    the money, whether it was said by you or not.

    Yeah, the madness really needs to stop.
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  • Profile picture of the author KimW
    My guess is because the economy is getting worse and not better,so as more people struggle to make ends meet they are lured to the internet make money fast schemes.
    I don't see them as often as I used to, but there is obviously still an unenlightened market out there of people that don't know better yet.
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  • Profile picture of the author nocentdvil
    Definitely this would have de-valued its share value, finger crossed for those who held it.
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  • Following the news yesterday that that the New York Stock Exchange was courting Facebook to list its stock on their exchange after the social network's messy first day of trading on the NASDAQ, it seems that the latter exchange is now in damage control mode trying to prevent the possible fallout.

    REPORT: NASDAQ Is In Damage Control Mode Over Botched Facebook IPO - Business Insider
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    • Profile picture of the author Kay King
      Some of the arguments being made are superficial to me. Before the IPO Facebook disclosed that GM was canceled advertising. They also disclosed ad revenues were down. The signs were there if anyone bothered to look.

      NASDAQ was not working as expected - but is that a crime? Can anyone guarantee a technical glitch will not happen on any technical site?
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