Massachusetts’ securities regulator fined Citigroup Inc. $2 million for failing to supervise technology analyst Mark Mahaney and an unnamed junior research analyst who improperly disclosed confidential information about Facebook Inc.’s initial public offering and unpublished revenue estimates for Google Inc.’s YouTube.
Facebook Inc.’s FB -3.22% stock price plumbed a new low Thursday as early investors were freed to sell some of their stakes, leaving the once-prized stock down nearly 50% from its debut and forcing executives of the young Internet giant to pump up morale.
After joining Facebook as vice president of marketing last year, Carolyn Everson made it her mission to win over skeptical ad executives who complained that spending on the giant social network wasn’t paying off.
For venture capitalists and other prominent investors in young companies, an initial public offering is supposed to be the big payoff for years of patience. It’s not working out that way for some backers of newly public Internet companies.