Facebook shares continued their slide on Tuesday, dropping
as much as 8 percent before 10 a.m. and bringing shares to a three-day low of
$31.46 before rebounding slightly. Personal profiles are not yet in danger of
being deleted to save money, so most of the world remains unperturbed, but
those involved in the dollars and cents are freaking out and finger-pointing. According
to a New York Magazine report it's either the fault of lead IPO underwriter
Morgan Stanley, the NASDAQ itself, or the company's uncertain financial
prospects.
Reuters dropped a bombshell this morning: Morgan Stanley,
which won a Wall Street knife fight to win the role of lead IPO underwriter,
was cutting its estimates for Facebook's future revenues even as it was
pitching the stock to major investors. "I've never seen that before in 10
years," said one mutual fund source who received the bad news. "That
deceleration freaked a lot of people out," said one investor.
Others claim that the Wall Street underwriters, which also
included JPMorgan and Goldman Sachs, "overplayed the enthusiasm and
probably just misread the atmosphere of the marketplace," one moneyman
said…..
Wait, wait...there's more at http://nymag.com/daily/intel/2012/05/facebook-fingerpointing-starts-as-stock-falls.html
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