With a weekend to figure things out, we've got a few suspects to blame for the mess that was Facebook's IPO debut on Friday. After a late start due to glitches on NASDAQ and a possible scandal in which Morgan Stanley upheld the price of the stock, Facebook's stock ended the day just where it started. It had a mini-pop, but it didn't soar, as expected. That was not supposed to happen. Since, NASDAQ has taken some of the blame, the trading index has admitted it had some issues that morning, according to The Wall Street Journal's Jenny Strasburg, Jacob Bunge, and Gina Chon. But, it's not the only player here and it's not really taking the full blame.
The Computers Did It
That's the excuse NASDAQ CEO Robert Greifeld had during a weekend conference call, blaming "poor design," reports Bloomberg's Nina Mehta. Though the exchange had done test runs before the big day, the system encountered a new technical snafu it hadn't anticipated."Nasdaq’s systems fell into a 'loop' that prevented the second-largest U.S. stock venue operator from opening the shares on schedule following the $16 billion deal, he said," writes Mehta. “It’s amazing that both Bats and Nasdaq unfortunately failed in an inglorious way,” William Karsh, the former chief operating officer at Direct Edge Holdings LLC, an exchange operator that competes with Nasdaq, told Mehta, referencing the Apple flash crash earlier this year. “It proves that technology isn’t infallible. There are so many moving parts that things can go wrong. That’s the lesson we learn," he said.