Analyst on Facebook Flop: Hoodie Scared Investors
Michael Pachter says, 'I told you so'
By Kevin Spak,  Newser Staff
Posted May 23, 2012 2:06 PM CDT
In this 2010 file photo, Facebook CEO Mark Zuckerberg talks about the social network site's privacy settings in Palo Alto, Calif.   (AP Photo/Marcio Jose Sanchez, File)

(Newser) – Why is Facebook's stock languishing well below its IPO asking price? Blame Mark Zuckerberg's hoodie, says Michael Pachter. The Wedbush securities analyst was widely snickered at a couple weeks ago for complaining that Zuckerberg shouldn't have worn the hoodie on Facebook's "roadshow" for investors. Now, he says he's been vindicated. No, it's not responsible for all Facebook's woes—"the flop is 100% a function of supply and demand"—but it didn't help, either.

"Had Mr. Zuckerberg worn a jacket instead of a hoodie (showing them that he respected them enough to 'dress up'), he would have made a statement to them that he cares about their needs," Pachter wrote in an email to Business Insider. "He chose not to make that statement, and the current share price demonstrates that investors have chosen not to support Facebook shares." If Zuckerberg had worn a jacket, he muses, "perhaps more people would be stepping in to buy now."