With stocks going down day after day, Facebook investors are still looking for a scapegoat. It seems that Facebook’s CFO is the one caught in a tight spot as he might take the blame over the Facebook IPO.
It goes without saying. In the financial world, messes are not often overlooked. Heads must go down when investors are losing big money. That’s why Facebook CEO, Mark Zuckerberg if is believed to fire David Ebersman, the company’s CFO.
The Facebook’s IPO went from $38 to only a few cents over $18, and nobody saw it coming. Experts said it was going to be the most important IPO of recent years in the IT industry, yet people lost money. It’s almost obvious if somebody has to go down it’s going to be the top CFO.
New York Times’ Andrew Ross Sorkin had a revelation over Labor Weekend. From his point of view it is Facebook’s CFO Mr. Ebersman who is the “one single individual more responsible than any other” for the IPO fail.
However firing Facebook’s CFO may not be one of the brightest things to do, considering that Ebersman brought during his career $10 billion in Facebook’s accounts.
Analysts say that Ebersman is only a so-called scapegoat in this scheme, when in fact Facebook’s economic downfall is the result of many other investors and managers. And among the first ones to blame is of course Facebook’s CEO Mark Zuckerberg for not taking care of what’s going on with his company’s name and financial future.
Continuing with this blame game we could highlight more of the people involved in Facebook’s financial nightmare. First of all, according to Forbes Magazine, among the ones to blame we can count Facebook’s underwriters, including Morgan Stanley and J.P. Morgan Chase who juggled poorly with their stock prices, taking down the market themselves.
For the most part, analysts agree when it comes to pointing fingers, Ebersman and Zuckerberg should both take the blame. Both the CEO and the CFO made unfortunate plans and miscalculations that influenced the way the markets evolved.
In the meanwhile, Facebook CEO Mark Zuckerberg seems to have come up with a sort of an escape plan. A plan extremely simple and very predictable: stop selling until things turn to a better light.
