Facebook has effectively issued a profits warning just a week before it's due to float on the stock market. It's a bizarre move, say analysts, who reckon the news might just frighten off anyone who wants to sink money into the world's top social media firm.
Facebook is getting set to raise between around £6.5 - £8.5bn in what will be Silicon Valley's largest ever IPO (initial public offering), stamping out the kind of offering that Google Inc and Amazon.com had a few years back. Whizzkid CEO Mark Zuckerberg kicked off his roadshows in New York earlier this week, where talked the talk to people who are interested in parting with up to £21 a share and is gauging Wall Street's response to a launch which looks set for next Friday the 18th of May.
Facebook just launched its mobile app store in a move which is being viewed as a possible counter attack to the firm delivering some news that could potentially worry investors. The company's warned that the speedy growth of mobile apps on tablets & smartphones (because people are using their desktop computers less and less) poses a sizeable threat to their bottom line in the long-term.
That was all revealed in changes to documents it's filed ahead of the floatation. Weird admission or a clever pre-emptive strike? Will it bother the market this time next week? We'll just have to wait and see.
I'm Marverine Cole. Don't forget our Tech Team is following this story closely, so for all the latest news about the Facebook IPO and more, head to the Tech tab on our website: ibtimes.co.uk