You know those stories where you hear from a Lamborghini dealer and a restauranteur and a real estate agent, and they’re all drooling over the lucre Silicon Valley’s newest batch of millionaire’s is going to drop when the post-IPO lock-up period during which they’re forbidden to sell their company’s shares comes to an end?
This is maybe the preface to the story in which the nation’s bankruptcy attorneys whip around airline rewards points as the tanking Facebook stock—falling to about $20 today, after offering at $38—costs California oodles of tax revenue and the state’s cities rush for the courthouse:
California may never see “hundreds of millions” in Facebook-related tax dollars necessary to balance the state budget as investors spurn the social media giant, the state’s top fiscal analyst warned Wednesday.
After its first earnings report failed to energize investors last week, Menlo Park-based Facebook closed Wednesday trading at $20.88 per share. The new low has sunk 45 percent below the company’s initial $38 share price.
The nonpartisan Legislative Analyst’s Office said Wednesday that “if the company’s stock price remains depressed, hundreds of millions of income tax dollars assumed in the 2012-13 state budget plan are at risk.”