The Breakdown

Explaining Southern California's economy

Facebook earnings: The postgame analysis

38543 full
38543 full

Facebook's IPO was a disaster and its first-ever earnings report didn't really make the situation much better. The company basically met Wall Street's modest expectations, but nonetheless the core executive team — CEO Mark Zuckerberg, COO Sheryl Sandberg, and COO David Ebersman — didn't clam investors fears about the company's future. And so it was crushed in after hours trading and was knocked down more than 10 percent in trading today.

When the dust cleared, Facebook, which IPO'd at more than a $100-billion market cap, was a company with just north of a $50-billion market cap.

Ouch!

I went on "AirTalk" with guest host David Lazarus to talk about Facebook's recent misfortunes. Listen up and tell me what you think. Is Facebook with us for long haul? Or has the slide toward irrelevance begun? If the latter, then this company could be the biggest Internet economy bust of all time. 

And California, you can forget about the big "Facebook effect" you were expected to solve some of the state's rolling budget crisis.

Follow Matthew DeBord and the DeBord Report on Twitter. And ask Matt questions at Quora.

blog comments powered by Disqus

Enjoy reading The Breakdown? You might like KPCC’s other blogs.

What's popular now on KPCC