California Lowers Revenue Projections From Facebook IPO

The state of California expects to take a $600 million hit in its budgeted projections for revenue from Facebook’s initial public offering, lowering its total for the three years ending in June 2014 to $1.3 billion from $1.9 billion.

The Wall Street Journal reported that aides to Gov. Jerry Brown included the modified projections in the state’s proposed budget for the fiscal year beginning July 1.

The reduced figures are due to the social network’s lower-than-expected stock price. Facebook went public May 18 at $38 per share but sunk almost immediately after trading began, dipping under $20 for quite some time.

Economist Steve Levy told the Journal:

The stock price fell fairly significantly from when they made the first estimate.

The stock closed Thursday at $30.14, and the Journal reported that the revised budget in May could reflect the higher stock price and bump revenue projections from the Facebook IPO back up.

Image courtesy of Shutterstock.

Related Stories
Mediabistro Course

Instagram Marketing

Instagram MarketingStarting October 27, learn how to gain likes and followers on one of the most popular social media platforms! In this course, you'll learn how to develop an Instagram strategy that will make your profile stand out and gain new followers, tell your brand's story through photos, and use your profile to drive your sales and business objectives. Register now!