Going public: Key developments in Facebook's IPO
July 26: In its first earnings report as a public company, Facebook says revenue grew 32 percent to $1.18 billion in the second quarter, slightly above analyst expectations. It had a net loss of 8 cents per share, mainly due to stock compensation expenses following its IPO. Adjusted earnings of 12 cents per share matched Wall Street's expectations. Investors weren't impressed, though, and its stock fell in trading.
Aug. 16: Ninety days after the stock began trading, some early investors and insiders are eligible to dump additional shares. Facebook's stock plunges to a new low.
Aug. 17: Facebook's stock falls further and hits $19 — half of its IPO price — just minutes before trading ended for the day.
Aug. 20: The stock price falls below $19, before bouncing back to close at $20.01. In a regulatory filing, it's disclosed that Peter Thiel, one of Facebook's earliest investors and a member of its board, was among the insiders selling stock after the lock-up period expired. He sold about 20 million shares through affiliates for $19.27 to $20.69 each.
Aug. 22: Federal government clears Instagram deal. Because of Facebook's falling stock price, the $1 billion cash-and-stock deal drops to about $750 million.
Sept. 4: Facebook says Zuckerberg won't sell stock in the company for at least the next 12 months. There had been concerns that additional shares could flood the market and depress stock prices further if Zuckerberg sold stock when he is eligible Nov. 14. The company also says employees will be able to sell their shares starting Oct. 29.
Sept. 6: Facebook says it has closed on its Instagram deal, now worth about $740 million — $300 million of it in cash and the rest in stock.
Sept. 11: Zuckerberg says the performance of Facebook's stock "has obviously been disappointing," and will probably cause some demoralized employees to defect. But he said he hopes most workers will stay and "double down" on Facebook's future.
Oct. 23: Facebook reports third-quarter results that inch past Wall Street's expectations, offering evidence that the company is making inroads in mobile advertising — a longtime concern among investors. Adjusted income was 12 cents per share, a penny better than what analysts were expecting. Revenue rose 32 percent to $1.26 billion, slightly above the $1.23 billion that analysts polled by FactSet were expecting.
Monday: Massachusetts officials announce that Morgan Stanley, the lead underwriter for the IPO, has agreed to pay a $5 million fine after they accused it of disclosing a revenue shortfall only to certain analysts and not the general public. Morgan Stanley doesn't admit guilt.
Business Photo Galleriesview all
- 36901Oklahoma weather: Crews work to clear storm damage in Oklahoma City as the state braces for severe weather Sunday.
- 36295Oklahoma tornadoes: 'It took it all'
- 32626Oklahoma Severe Storm Updates
- 8549Wild hogs continue to be a growing menace across Oklahoma
- 5487OKC Thunder GM Sam Presti won't amnesty Kendrick Perkins
- 4132Oklahoma City Thunder: What could Serge Ibaka learn from Hakeem Olajuwon?
- 4021Oklahoma State football: Limiting Wes Lunt's transfer options makes Mike Gundy look bad