Facebook (Nasdaq:FB) with the 60 forward PE is going live with earnings on Thursday. The way they handle the conference call will tell a lot about management maturity. To date they have been the darlings of the tech space. They have been a trend setters that everyone worries about. Their IPO was controversial to say the least.
Now management needs to talk to the boss. The shareholder. While it is doubtful they will report big revenue numbers the market will parse the style and demeanour of the senior executives on the call. How will they deal with news which is not outstanding? How will they contrast the promises from the IPO with the reality of an operating business. Litigations lawyers will be listening closely.
Zuckerberg may or may not be on the call. Yes he is a Billionaire shareholder with enormous executive clout. Chances are he will not be on the call as is typical for many large tech concerns. The disclosure/governance problem will be to decide if Zuckerberg is the right guy and can answer to Facebook or is he the next Jerry Yang and will just sit off to the side in a golden rocking chair.
Zuckerberg does not need the rough ride. My call is he will not put on a public face and just put up the hoodie.
George Gutowski writes from a caveat emptor persepctive.
- Facebook Baptized in River of Failure $FB (financialskeptic.wordpress.com)
- When Zuckerberg Fired Morgan Stanley, Mortgage Edition (seekingalpha.com)
- Jerry Yang Leads New Funding Round for OpenBucks (blogs.wsj.com)