Facebook Counting Down to First Earnings Call
After a less-than-successful IPO, Facebook is trying to redeem itself as a profitable, successful business.
With its first earnings release as a public company just days away, Facebook is back in the spotlight again. Shares of the social networking giant have fallen 24% since its IPO, but executives hope to alleviate concerns about the company's future in a conference call scheduled for July 26, reports Bloomberg.
The call will be the first chance Facebook's management has had since May to argue that the company deserves a higher share price, Bloomberg reports. Facebook will also need to address how it will handle competition from Twitter and Google, and how the company plans to make money from mobile advertising.
It's expected that Facebook Chief Financial Officer David Ebersman and Chief Operating Officer Sheryl Sandberg will be on the call.
Ramping Up Aqu-Hiring Strategy
Meanwhile, Facebook is making waves for its acquisition strategy. PC World reports that it and Google are both acquiring start-ups more for their skilled employees than for products and services.
That can be good news for the start-up team, but bad news for users of the fledgling company's products. When mobile bookmarking app developer Spool joined Facebook this month, it shut down its service, PC World notes. Similarly, when the team of file-transfer start-up Caffeinated Mind was acquired, it discontinued its consumer-focused file sharing service, InfoWorld reports.
Nasdaq Plans Facebook IPO Make-Good
And Facebook's less-than-successful IPO is back in the headlines, now that Nasdaq OMX Group has filed a plan to pay the firms who lost money in the process a total of $62 million.
The all-cash reimbursement plan is a move by Nasdaq to repair its reputation and appease customers, according to Reuters.
But while the amount is significantly more than the $40 million originally proposed in June, it won't entirely cover the over $200 million that market makers lost in Facebook's $16 billion IPO in May, Reuters reports:
Knight Capital Group -- one of the top four retail market makers in the Facebook IPO, along with UBS, Citigroup's Automated Trading Desk, and Citadel Securities -- reported its earnings on Wednesday, detailing its $35.4 million in losses associated with the Facebook IPO problems.
