A woman watches Facebook CEO Mark Zuckerberg speaking in a road show video… (Mladen Antonov/ AFP / Getty…)
Mark Zuckerberg was not the only no-show in Boston, Facebook’s second stop on its road show to pitch its initial public stock offering. Also missing in action Tuesday was the company's slickly produced video to pump up interest in the IPO.
Investors who attended Monday’s kickoff event in New York were frustrated they spent half an hour watching the video they could have easily viewed online instead of getting face time with the social network’s executives. They were limited to eight questions with Facebook’s CEO and its executives.
"I think the video is fine," said Wedbush Securities analyst Michael Pachter, who has a buy rating on the stock. "But there is not a single number in there. If you are asking people to put their money into this, there’s an expectation of a return. And it’s incumbent on the company soliciting the investment to explain to investors why it’s a good investment."
Still, Pachter says he expects retail demand for Facebook stock will be "phenomenal."
"People get the potential," Pachter said. "And people admire Mark Zuckerberg. He’s got a couple of years and then he’s going to have to show people he can actually make money. If revenues don’t grow a lot in the next two years, people’s patience will wear thin."
Pachter also took issue with Zuckerberg showing up at the investor meeting in his trademark jeans and zip-up hoodie.
"I don't care how you dress at work, but if you are coming to a meeting to ask for money, you’d think he could put a jacket on," Pachter said.
Facebook declined to comment.
The road show is expected to hit stops on the Eastern Seaboard before returning to Silicon Valley to pitch its shares to investors in Palo Alto.
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