Netflix, Amazon, Facebook and Why to Keep a Big Startup Private

Netflix, Amazon, Facebook and Why to Keep a Big Startup Private

Eventhough Netflix is making the right business move for the long-term their stock price is reeling.  Similarly Amazon is a retail giant, a content producer and quietly (at least as far as Wall Street is concerned) establishing a cloud position that will one day make it as big in the enterprise IT space as IBM is but a dip in profits has their stock dropping 30 points.  The reason is that Wall Street works on quarterly results.  Clearly they’ve never heard of a pivot.

There are things that are unique to the startup world and Wall Street isn’t set to deal with them.  Pivots are the easiest example; rapid executive changes, advisory boards, equity incentives and others.  If you’re planning one of these things, it’s probably best to do it as a private company.

I wonder if one of these reasons, or perhaps another one I haven’t thought of is keeping Facebook private?