Now that that’s out of the way, let’s look at the real damage that is a result of the Facebook IPO. That is the venerable NASDAQ Stock Exchange. Well, maybe venerable is a strong word. Especially after how it handled the most talked about IPO in history. Venture Beat reported
One day after admitting it screwed up, Nasdaq is planning to make things right with investors who lost money over trading glitches during the Facebook IPO. Nasdaq is planning to spend $13 million to make amends for bad trades that weren’t processed, reports the Wall Street Journal.
Nasdaq took a lot of heat for computer problems that negatively affected the Facebook IPO. Trading didn’t start on Friday May 18 until 11:30 am EDT, because the computers that run the Nasdaq couldn’t process the large volume of trades.
Talk about a reputation black eye, this one takes the cake. Also, isn’t it curious that they are thinking a paltry $13 million will make this all better? There are lawyers right now doing calculations that are causing calculators to spontaneously combust over what may or may not have been lost due to NASDAQ’s failure.
What better way to point out the limitations of the digital age than to have it fail itself. Of course, as in any good screw-up, someone will have to pay the piper, so to speak, and the NASDAQ is the one.
The money is one thing but the reputation black eye is really the troubling piece. Now, whenever there is an IPO that even has the scent of being hot people will recall the great Facebook IPO fail. Things like this also have the awful potential of becoming part of the lexicon of the space when people will refer to a colossal technical mishap as “Pulling a NASDAQ”. Tech folks around the globe are now fearing the words from their bosses of “Don’t NASDAQ this up!”.
Is this something the NASDAQ will recover from? Yes and no. First of all their competition is limited so they have that going for them. But this will forever be part of the Facebook myth and legend that is being crafted every day. The reminders of this kind of error might reach Bill Buckner like proportions (sorry Red Sox fans but you cannot out run that one no matter how many years have rolled through your legs).
Oh and to settle at that lucky number 13 for the millions you think it will take to make this good?? Isn’t that adding insult to injury at this point?
So what do you reputation experts think of this one? Will the NASDAQ recover? Is this no big deal? Will we be hearing about lawsuits regarding the ‘losses’ both real and conjured up?