Facebook Inc (FB) IPO Still Dragging On Nasdaq OMX Results

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) announced its earnings report for the first three months of 2013 this morning, showing good progress in the first quarter of the year. On today’s market, Facebook Inc (NASDAQ:FB) shares trended up by a percentage point, while Nasdaq OMX Group shares were down by more than 1.5 percent.

Facebook Inc (FB) IPO Still Dragging On Nasdaq OMX Results

The company revealed that it had earned 64 cents per share in the first quarter of the year, on revenues totaling $418 million. In the first three months of 2012, the company earned 61 cents per share on revenues of $411 million. In the run up to the release of this report, analysts were expecting the company to put up earnings per share of $0.62 on revenues of $419 million.

The biggest problem with the earnings report, however, were the one-off charges relating to the company’s disastrous handling of Facebook Inc (NASDAQ:FB) IPO in May 2012. After those deductions are made, the company earned just 25 cents per share. In the earnings report, the company detailed the progress it had made on dealing with claims related to the Facebook IPO.

In the wake of the Facebook Inc (NASDAQ:FB) IPO, the Nasdaq exchange had problems matching the buy and sell orders of investors, resulting in some investors buying stock at the wrong prices. The total cost of that debacle to Wall Street traders, according to the earnings report, was $500 million.

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) said that it had set aside $10 million in order to settle a case with US regulators over its handling of the Facebook Inc (NASDAQ:FB) IPO. The company has also offered a $62 million plan to pay back investors who lost out on the trades.

Since the start of 2013, Facebook Inc (NASDAQ:FB) shares have lost just over 1 percent of their value. The high price charged at the firm’s IPO, and the disastrous handling in the aftermath, continue to create a mist of untrustworthiness around the company’s stock, despite its efforts to reinvent itself and increase monetization.

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) shares have increased by more than 12 percent since the start of 2013. The company has not been damaged by the Facebook Inc (NASDAQ:FB) IPO as much as the social networking giant has, and its creation of a package to finish the cases around the disaster have impressed the market.

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Paul Shea
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