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Facebook escapes blame over botched listing but banks disliked

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Wed, 30/05/2012 - 14:36
Facebook escapes blame over botched listing but banks disliked

Facebook’s recent IPO debacle has had a mixed impact on the perception of the US brands involved.

YouGov’s BrandIndex clearly registers the negative buzz surrounding alleged mismanagement of the Facebook IPO.

Our Buzz score is driven from the net of those that say they have heard negative Buzz about a brand compared with those who have heard positive Buzz about a brand.

Facebook’s Buzz fell by a whopping 36 points from +28 to -8 in the week following the IPO (18 May).

However its Index score – a composite measure of brand perception across a range of metrics including value, quality and satisfaction – has seen pretty low impact, falling by just four points in the same period, showing how little real blame has been attached to the social media giant.

Negative Buzz for underwriters
The underwriters of the IPO, on the other hand, have received a more negative verdict from the US public. Negative Buzz across the three underwriters of the IPO increased between 22 and 23 May after reports of various lawsuits were published.

Morgan Stanley, the lead underwriter, fared the worst among the three firms – falling by six points to -14.5 and suffering actual brand damage, with its Index score falling by six points to -11.

Lawsuit may tarnish banks more
The Facebook IPO lawsuits could yet prove worse news for JP Morgan, who announced $2bn trading losses earlier in the month.

The bank had already recovered nine of the 17 Index points lost prior to the 23 May – but now it appears JP Morgan’s public image recovery is suffering yet another setback.

One might have expected Facebook and the three banks to be tarred with the same brush, and yet Facebook’s Index score is already bouncing back while those of the banks continues to decline.

It would appear that companies that provide services enjoyed by the public escape blame, while banks get it full on.

Buzz Scores
Buzz Scores
Index Scores
Index Scores
People Illustration