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?