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Facebook: Is 'The Hacker Way' Dead?

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Bloomberg is reporting that Facebook tried to paint a rosy picture before its IPO.

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MINYANVILLE ORIGINAL

We believe that a more open world is a better world because people with more information can make better decisions and have a greater impact. That goes for running our company as well.

-Mark Zuckerberg

Facebook (NASDAQ:FB) is getting another smackdown this morning courtesy of Bloomberg, which last night published an extensive account of the company's attempts to paint a pretty picture before its May IPO.

According to Bloomberg, Barbara Jacobs, an assistant director for corporation finance at the SEC, pushed Facebook to disclose key financial challenges, like the decelerating revenue growth and user count, and dependence upon social gaming company Zynga (NASDAQ:ZNGA) (see: Why Zynga's Mess Is Bad for Facebook).

In addition, the SEC team battled Facebook on claims regarding the effectiveness of ads and the calculation of the mobile user count.

Hmm, makes my opening quote seem a little ironic, don't you think?

Now since I have a big short position in Facebook, I smile every time the stock ticks down (see: Facebook Hits 1 Billion Users Mark. So Is That a Good Thing or a Bad Thing?).

However, none of this appears to be news -- though there is big-picture relevance, as I'll discuss below.

On February 2, Facebook delivered its first IPO filing, at which point anyone with a brain could see that business wasn't all it was cracked up to be (see: Facebook, Running Out of Bodies, Is in Need of Major Reacceleration in Monetization Rates).

The slowdown became even more obvious on April 23, when Facebook amended its S-1 to reflect Q1 results (see: Facebook's Q1 Results Indicate Further Deterioration in Growth and Monetization Metrics).

Here are two charts I presented on that date:





So the slowdown wasn't news.
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