Facebook (FB) in Months-Long Battle with SEC Over Mobile Users Ahead of IPO
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Facebook (Nasdaq: FB) is lower on the session following reports that the Company fought with the U.S. SEC over material disclosures related to the precision of its advertising operations and its effect on sales.
Inquiries began in February, when Facebook used Nielsen data to estimate the adaption of its ad model with users. In the weeks leading up to the May 18th IPO, Facebook might have still be guessing on how to quantify certain metrics of its business.
One rep from the SEC also poked at Facebook's mobile user metrics. Seeing that some mobile users were being counted twice, the SECs Barbara Jacobs asked how Facebook thinks its metrics are not overstated. Then, just days before the event, Facebook issued a filing that mobile users were growing faster than ad growth, which could impact revs and profits.
Given that Facebook is down about 50 percent from its IPO price, the mobile ad issue still hasn't disappeared. Recently, Facebook disclosed having over 1 billion user accounts globally, with 600 million accessing Facebook from a smartphone or tablet device. That number is up 41 percent just on a year-over-year basis.
To read the rest of the report, which is a little lengthy, click here.
Shares of Facebook are down about 2.6 percent, off of session lows, but comfortably below the key $20 level. Facebook will report upcoming quarterly results on October 23rd.
Inquiries began in February, when Facebook used Nielsen data to estimate the adaption of its ad model with users. In the weeks leading up to the May 18th IPO, Facebook might have still be guessing on how to quantify certain metrics of its business.
One rep from the SEC also poked at Facebook's mobile user metrics. Seeing that some mobile users were being counted twice, the SECs Barbara Jacobs asked how Facebook thinks its metrics are not overstated. Then, just days before the event, Facebook issued a filing that mobile users were growing faster than ad growth, which could impact revs and profits.
Given that Facebook is down about 50 percent from its IPO price, the mobile ad issue still hasn't disappeared. Recently, Facebook disclosed having over 1 billion user accounts globally, with 600 million accessing Facebook from a smartphone or tablet device. That number is up 41 percent just on a year-over-year basis.
To read the rest of the report, which is a little lengthy, click here.
Shares of Facebook are down about 2.6 percent, off of session lows, but comfortably below the key $20 level. Facebook will report upcoming quarterly results on October 23rd.
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