NASDAQ and the Great Social Media Selloff

Thursday, June 7. 2012

NASDAQ and the Great Social Media Selloff

Stock Prices of $FB, $GRPN, $LNKD, $ZNGA since Facebook IPO. Chart from Google

News today that NASDAQ is going to compensate traders for its system glitches during the Facebook IPO to the tune of $40m (Sharecast via Yahoo):

LONDON (ShareCast) - Nasdaq OMX Group has decided to return 40 million dollars to those brokers whose orders were mishandled in Facebook's initial public offering (IPO) due to technical errors. Specifically, the US stock exchange operator said it will pay $13.7m in cash and the remaining amount would be credited via lower trading fees for those brokers that were affected. A series of glitches when Facebook went public delayed the start of trade by half an hour and left many trades unexecuted.

The traders are still not happy though. But, given the drastic reduction in the Facebook share price (down 30% in a flat market over the period), and the Great Social Media Selloff overall (see chart above), you'd think that these pension funds etc would offer to pay NASDAQ in gratitude, for preventing them from buying even more of a tanking stock at even dumber prices.

Posted by Alan Patrick in Bubblewatch at 16:09 | Comments (0) | Trackbacks (0)

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