Meta, formerly known as Facebook
#162
The sizzle in the Steak
Suckers getting suckered today!!
#163
Pro
Said just like the guys with ultra-not-hot wives all say it
#164
Pro
Not selling it till it doubles. I need that money!!! With the amount lost so far, I could have had a friggin' A-spec kit... lose some more and I could have gotten a replacement bumper painted and installed aghhhhh
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IIRC, he's been with her since his Harvard days. I think when FB was new and called "the Facebook" and only for college students. The good ol days of FB.
#166
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I'm LONG for FB
#167
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Lol, some people with Morgan stanleys brokerage clients have their trades from Friday unexecuted. I'd say they're lucky it didn't go thru.
#168
Pro
I wasn't in the country a few years, then I come back end of 2005 and I keep hearing "facebook" "facebook" and I was utterly bewildered... thought that was the name of the college year book or something and people were stalking each other in it... so disorienting, everyone using it around me like I had any idea what they were talking about
#169
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If you're feeling nostalgic there is always https://thefacebook.com/ ... to visit
I wasn't in the country a few years, then I come back end of 2005 and I keep hearing "facebook" "facebook" and I was utterly bewildered... thought that was the name of the college year book or something and people were stalking each other in it... so disorienting, everyone using it around me like I had any idea what they were talking about
I wasn't in the country a few years, then I come back end of 2005 and I keep hearing "facebook" "facebook" and I was utterly bewildered... thought that was the name of the college year book or something and people were stalking each other in it... so disorienting, everyone using it around me like I had any idea what they were talking about
Although it just links me back to the regular FB log on page...
#170
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My wife IS beautiful but I didn't marry her for her looks. In the end, we're all ugly. Personality is what matters.
And I'm assuming Mr. Facebook married his wife for something more meaningful.
#171
Карты убийцы
I shorted 139,900 shares at $40.15... I ALSO CALLED THE WINNER IN THE KENTUCKY DERBY AND PREAKNESS... what would have been the better call.
#172
Senior Moderator
#173
Senior Moderator
Business Insider puts it...nicely.
This isn't going to be a popular thing to say, but it needs to be said. So here goes...
All this whining and umbrage about Facebook's IPO is ridiculous.
When are people who voluntarily speculate on stocks finally going to take responsibility for their decisions?
Never, apparently.
On Thursday, Facebook priced its IPO at $38.
On Friday, the stock opened at $42, a 10% jump, and spent most of the day trading above $40. Then, thanks to heavy support from the company's bankers, the stock closed just above $38.
In other words, even after the sharp selling at end of the day, Facebook IPO buyers were better off than they had been the day before. And if they were among those who took the abundant opportunity throughout the day to sell stock above $40, they locked in a nice overnight gain.
But to hear people bitch, you'd think they'd been swindled out of their life savings.
The New York Post captured the prevailing sentiment perfectly:
ZUCKERS!
They were Mark Zuckerberg’s cash cows.
Hordes of everyday New Yorkers played the fool yesterday to Wall Street fat cats and Facebook insiders, who used a bloated stock price to milk them of billions of dollars during an overhyped IPO.
With a $38-a-share price tag and forecasts for a 10 percent jump, mom-and-pop investors blindly bought in with dreams of instant riches that never came true.
Meanwhile, the social network’s hoodie-wearing CEO finished the day with a net worth of $19.25 billion. The average Facebook employee saw their on-paper wealth shoot up to $2.9 million.
Wow, sounds horrible.
And what happened, exactly?
Apparently, IPO buyers got less free money than they expected to.
The hope, presumably, was that--no matter where Facebook's IPO priced--the enormous demand from suckers would cause the stock to "pop" when it started trading--thus allowing the shrewd IPO buyers to flip their shares at a profit only hours after buying them.
Of course, that's exactly what the IPO buyers were given a chance to do. For about 4 hours yesterday, the IPO buyers could have locked in an instant 5%-10% gain. But apparently this wasn't the 50%+ gain they were looking for.
Well, it's time for people to grow up.
The $38 that Facebook IPO buyers voluntarily paid for the stock--emphasis on voluntarily--was already an extremely rich price for a company with decelerating revenue and only ~$0.35 of earnings last year. The only way these buyers were going to get a big "pop" from that price was if other investors seeking the same instant riches were even more aggressive and reckless than they were.
And it turned out that those even-more-aggressive-and-reckless traders stayed home.
So Facebook IPO buyers only got their 10% instant gain.
And a lot of them, apparently, did not take the opportunity to lock in that gain. Instead, they held on to the stock, either hoping that it would trade higher (likely), or because they are actually long-term investors.
And now, with the stock looking as though it will crash through the underwriters' support and the IPO price on Monday, the IPO buyers are blaming their decision to hold onto it on Facebook, too.
So, what exactly were you looking for, folks?
Even more free money?
Just for pressing "buy"?
In what other normal universe would you ever expect that?
Facebook could not have been clearer about how it was going to emphasize the long-term at the expense of the short-term, and that's exactly what it did in choosing its IPO price. Facebook now has a lot more cash at its disposal than it would have if it had lowballed the IPO just to give buyers a "pop." That cash is valuable to the company, and it will help the company create more value over the long-term.
In the weeks leading up to the IPO, moreover, many analysts screamed from the rooftops that Facebook's stock seemed extremely expensive. We even went to far as to call it "muppet bait."
And when the stock opened on Friday at merely an extremely expensive price, instead of a ludicrous one, we were relieved. Because it meant that millions of investors weren't buying it at absurd prices in the after-market... and thereby setting themselves up to get creamed when the hype faded.
But apparently those who did buy the IPO were expecting to get something for nothing. (And not just "something." They were expecting to get a lot for nothing.)
And when they didn't, they started taking their frustrations out on Facebook.
Trading stocks is a risky business. Perhaps it's time for those who voluntarily choose to do it to acknowledge that.
Read more: http://www.businessinsider.com/sorry...#ixzz1vWjKX5Ff
All this whining and umbrage about Facebook's IPO is ridiculous.
When are people who voluntarily speculate on stocks finally going to take responsibility for their decisions?
Never, apparently.
On Thursday, Facebook priced its IPO at $38.
On Friday, the stock opened at $42, a 10% jump, and spent most of the day trading above $40. Then, thanks to heavy support from the company's bankers, the stock closed just above $38.
In other words, even after the sharp selling at end of the day, Facebook IPO buyers were better off than they had been the day before. And if they were among those who took the abundant opportunity throughout the day to sell stock above $40, they locked in a nice overnight gain.
But to hear people bitch, you'd think they'd been swindled out of their life savings.
The New York Post captured the prevailing sentiment perfectly:
ZUCKERS!
They were Mark Zuckerberg’s cash cows.
Hordes of everyday New Yorkers played the fool yesterday to Wall Street fat cats and Facebook insiders, who used a bloated stock price to milk them of billions of dollars during an overhyped IPO.
With a $38-a-share price tag and forecasts for a 10 percent jump, mom-and-pop investors blindly bought in with dreams of instant riches that never came true.
Meanwhile, the social network’s hoodie-wearing CEO finished the day with a net worth of $19.25 billion. The average Facebook employee saw their on-paper wealth shoot up to $2.9 million.
Wow, sounds horrible.
And what happened, exactly?
Apparently, IPO buyers got less free money than they expected to.
The hope, presumably, was that--no matter where Facebook's IPO priced--the enormous demand from suckers would cause the stock to "pop" when it started trading--thus allowing the shrewd IPO buyers to flip their shares at a profit only hours after buying them.
Of course, that's exactly what the IPO buyers were given a chance to do. For about 4 hours yesterday, the IPO buyers could have locked in an instant 5%-10% gain. But apparently this wasn't the 50%+ gain they were looking for.
Well, it's time for people to grow up.
The $38 that Facebook IPO buyers voluntarily paid for the stock--emphasis on voluntarily--was already an extremely rich price for a company with decelerating revenue and only ~$0.35 of earnings last year. The only way these buyers were going to get a big "pop" from that price was if other investors seeking the same instant riches were even more aggressive and reckless than they were.
And it turned out that those even-more-aggressive-and-reckless traders stayed home.
So Facebook IPO buyers only got their 10% instant gain.
And a lot of them, apparently, did not take the opportunity to lock in that gain. Instead, they held on to the stock, either hoping that it would trade higher (likely), or because they are actually long-term investors.
And now, with the stock looking as though it will crash through the underwriters' support and the IPO price on Monday, the IPO buyers are blaming their decision to hold onto it on Facebook, too.
So, what exactly were you looking for, folks?
Even more free money?
Just for pressing "buy"?
In what other normal universe would you ever expect that?
Facebook could not have been clearer about how it was going to emphasize the long-term at the expense of the short-term, and that's exactly what it did in choosing its IPO price. Facebook now has a lot more cash at its disposal than it would have if it had lowballed the IPO just to give buyers a "pop." That cash is valuable to the company, and it will help the company create more value over the long-term.
In the weeks leading up to the IPO, moreover, many analysts screamed from the rooftops that Facebook's stock seemed extremely expensive. We even went to far as to call it "muppet bait."
And when the stock opened on Friday at merely an extremely expensive price, instead of a ludicrous one, we were relieved. Because it meant that millions of investors weren't buying it at absurd prices in the after-market... and thereby setting themselves up to get creamed when the hype faded.
But apparently those who did buy the IPO were expecting to get something for nothing. (And not just "something." They were expecting to get a lot for nothing.)
And when they didn't, they started taking their frustrations out on Facebook.
Trading stocks is a risky business. Perhaps it's time for those who voluntarily choose to do it to acknowledge that.
Read more: http://www.businessinsider.com/sorry...#ixzz1vWjKX5Ff
#174
Senior Moderator
I'm sticking to robot stocks.
#175
Карты убийцы
#176
#177
Registered but harmless
Join Date: Aug 2005
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She has also lost a bit of weight and doesn't look as frumpy as in those gossip rag photos from a few years ago.
AZuser posted some photos above that make her look pretty good. Too much blush, though.
When FB and the stock really tank and Zuckerberg is down to his last $100 million, he'll at least have married a medical doctor who can support him.
#179
Pro
That's a solid 5... in China.
Yeah in USA you only see an Asian person once every few weeks or so, and consequently don't have a good basis for judging their looks... so you just throw in all these ridiculous and unjustified points for exoticness.
Oh and plus, she finished highschool 2003 that makes her probably ~26. That's middle-MILF age. I'm only 29, so chicks that old are just not my cup of tea. Oldest I'd go is a (maybe) a pre-MILF, in desperation. Having a billion dollars that kind of desperation is absolutely not warranted.
Yeah in USA you only see an Asian person once every few weeks or so, and consequently don't have a good basis for judging their looks... so you just throw in all these ridiculous and unjustified points for exoticness.
Oh and plus, she finished highschool 2003 that makes her probably ~26. That's middle-MILF age. I'm only 29, so chicks that old are just not my cup of tea. Oldest I'd go is a (maybe) a pre-MILF, in desperation. Having a billion dollars that kind of desperation is absolutely not warranted.
#181
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Meh, I would kick her out of my bed...
#182
The sizzle in the Steak
That's a solid 5... in China.
Yeah in USA you only see an Asian person once every few weeks or so, and consequently don't have a good basis for judging their looks... so you just throw in all these ridiculous and unjustified points for exoticness.
Oh and plus, she finished highschool 2003 that makes her probably ~26. That's middle-MILF age. I'm only 29, so chicks that old are just not my cup of tea. Oldest I'd go is a (maybe) a pre-MILF, in desperation. Having a billion dollars that kind of desperation is absolutely not warranted.
Yeah in USA you only see an Asian person once every few weeks or so, and consequently don't have a good basis for judging their looks... so you just throw in all these ridiculous and unjustified points for exoticness.
Oh and plus, she finished highschool 2003 that makes her probably ~26. That's middle-MILF age. I'm only 29, so chicks that old are just not my cup of tea. Oldest I'd go is a (maybe) a pre-MILF, in desperation. Having a billion dollars that kind of desperation is absolutely not warranted.
(cues-banjo music)
#183
The sizzle in the Steak
#184
Old Man Yelling at Clouds
Have you SEEN Zuckerberg? What's the upside of him marrying up out of his league, when the only thing filling the gap between his average looks and her exceptional looks is his money? Because that's worked out great for so many people. A woman like that marring down would hang around long enough to earn a decent payoff for a divorce and then she'd be off.
Heaven forbid he actually be with someone he loves, that loves him back.
#185
Senior Moderator
Okay, not sure why Priscilla Chan has anything to do with the stock pricing.
And those 3 pics cannot be her as they don't look like the other pictures of the woman with Mark in other photos.
And those 3 pics cannot be her as they don't look like the other pictures of the woman with Mark in other photos.
#186
Old Man Yelling at Clouds
Facebook has built a following for being the exact opposite of that. People who want to connect, chat, share...anything but spend money. To make it worse, Facebook is popular because it intentionally avoids anything that interfere's with people connecting. What did the movie say, a bunch of ads would would make it "uncool"?
So how does Facebook become Google, without actually competing in the same market space as Google? Facebook can get money two ways: from consumers (which would be the death of it), and advertisers (which goes against why its popular in the first place). Both are fail modes for that site.
I can't excape the feeling this will be remembered as one of the biggest deceptions of all time. Facebook has no obvious way to make money in a long-term sustainable way.
Last edited by 1Louder; 05-21-2012 at 06:50 PM.
#187
The sizzle in the Steak
The underwriters completely screwed this one up.
What a mess.
What a mess.
#188
The sizzle in the Steak
...and earnings are 3 months out.
Who would buy this now?!?!?!
Who would buy this now?!?!?!
#189
Old Man Yelling at Clouds
^ People who think that just because something is a big idea with a big presence that those things equal revenue....
#190
Карты убийцы
I'm not 100% sure about their business model... 9 billion users o.k. Cheerios and Poptarts will spend $.0000001 per ad. I guess it could work, but I hate Facebook. I tried it, and I'll I got was that my church is the greatest place on earth. I still like email better than Twitter or anything else.
#191
Drifting
I'm not 100% sure about their business model... 9 billion users o.k. Cheerios and Poptarts will spend $.0000001 per ad. I guess it could work, but I hate Facebook. I tried it, and I'll I got was that my church is the greatest place on earth. I still like email better than Twitter or anything else.
That business insider story is spot on. I think people forget the point of what an IPO is for.
It's for the company to sell their stock on the public market to generate cash (and for investors to cash out). They priced their IPO at $38 and sold EVERY SINGLE SHARE they offered. (I believe that number was 484.42 million). They were able to add ~18 Billion to their balance sheet.
Firms call it a failure are the same ones that got pre-ipo pricing and expected they could sell for a 50% bump and make some quick cash. Well, boo-fucking-hoo.
I am VERY interested to see what the company does with 18Bil in cash. They could make some really impressive moves in the market.
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#192
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#194
Q('.')=O
iTrader: (1)
I'm not budging for at least a month.
The only 'good' thing is the money I invested in this is from a cash balance plan that I rolled over into an IRA a few months ago. And I just found out I even had a cash balance plan about 6 months ago . So that is why I'm not too worried about this.
The only 'good' thing is the money I invested in this is from a cash balance plan that I rolled over into an IRA a few months ago. And I just found out I even had a cash balance plan about 6 months ago . So that is why I'm not too worried about this.
#196
Team Owner
Thread Starter
You guys have been officially screwed.
Insight: Morgan Stanley cut Facebook estimates just before IPO
http://news.yahoo.com/insight-morgan...0--sector.html
Insight: Morgan Stanley cut Facebook estimates just before IPO
http://news.yahoo.com/insight-morgan...0--sector.html
(Reuters) - In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.
The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast.
They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion.
The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop.
"This was done during the roadshow - I've never seen that before in 10 years," said a source at a mutual fund firm who was among those called by Morgan Stanley.
JPMorgan Chase and Goldman Sachs, which were also major underwriters on the IPO but had lesser roles than Morgan Stanley, also revised their estimates in response to Facebook's May 9 SEC filing, according to sources familiar with the situation.
Morgan Stanley declined to comment and Devitt did not return a phone message seeking comment. JPMorgan and Goldman both declined to comment.
Typically, the underwriter of an IPO wants to paint as positive a picture as possible for prospective investors. Investment bank analysts, on the other hand, are required to operate independently of the bankers and salesmen who are marketing stocks - that was stipulated in a settlement by major banks with regulators following a scandal over tainted stock research during the dotcom boom.
The people familiar with the revised Morgan Stanley projections said Devitt cut his revenue estimate for the current second quarter significantly, and also cut his full-year 2012 revenue forecast. Devitt's precise estimates could not be immediately verified.
"That deceleration freaked a lot of people out," said one of the investors.
Scott Sweet, senior managing partner at the research firm IPO Boutique, said he was also aware of the reduced estimates.
"They definitely lowered their numbers and there was some concern about that," he said. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow."
That client, he said, still bought the issue but "flipped his IPO allocation and went short on the first day."
"VERY UNUSUAL"
Sweet said analysts at firms that are not underwriting IPOs often change forecasts at such times. However, he said it is unusual for analysts at lead underwriters to make such changes so close to the IPO.
"That would be very, very unusual for a book runner to do that," he said.
The lower revenue projection came shortly before the IPO was priced at $38 a share, the high end of an already upwardly revised projected range of $34-$38, and before Facebook increased the number of shares being sold by 25 percent.
The much-anticipated IPO has performed far below expectations, with the shares barely staying above the $38 offer price on their Friday debut and then plunging on Monday.
Companies do not make their own financial forecasts prior to an IPO, and underwriters are generally barred from issuing recommendations on the stock until 40 days after it begins trading. Analysts often rely on guidance from the company in building their forecasts, but companies doing IPOs are not permitted to give out material information that is not available to all investors.
Institutions and major clients generally enjoy quick access to investment bank research, while retail clients in many cases only get it later. It is unclear whether Morgan Stanley only told its top clients about the revised view or spread the word more broadly. The firm declined to comment when asked who was told about the research.
"It's very rare to cut forecasts in the middle of the IPO process," said an official with a hedge fund firm who received a call from Morgan Stanley about the revision.
(Editing by Jonathan Weber, Martin Howell and Ian Geoghegan)
The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast.
They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion.
The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop.
"This was done during the roadshow - I've never seen that before in 10 years," said a source at a mutual fund firm who was among those called by Morgan Stanley.
JPMorgan Chase and Goldman Sachs, which were also major underwriters on the IPO but had lesser roles than Morgan Stanley, also revised their estimates in response to Facebook's May 9 SEC filing, according to sources familiar with the situation.
Morgan Stanley declined to comment and Devitt did not return a phone message seeking comment. JPMorgan and Goldman both declined to comment.
Typically, the underwriter of an IPO wants to paint as positive a picture as possible for prospective investors. Investment bank analysts, on the other hand, are required to operate independently of the bankers and salesmen who are marketing stocks - that was stipulated in a settlement by major banks with regulators following a scandal over tainted stock research during the dotcom boom.
The people familiar with the revised Morgan Stanley projections said Devitt cut his revenue estimate for the current second quarter significantly, and also cut his full-year 2012 revenue forecast. Devitt's precise estimates could not be immediately verified.
"That deceleration freaked a lot of people out," said one of the investors.
Scott Sweet, senior managing partner at the research firm IPO Boutique, said he was also aware of the reduced estimates.
"They definitely lowered their numbers and there was some concern about that," he said. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow."
That client, he said, still bought the issue but "flipped his IPO allocation and went short on the first day."
"VERY UNUSUAL"
Sweet said analysts at firms that are not underwriting IPOs often change forecasts at such times. However, he said it is unusual for analysts at lead underwriters to make such changes so close to the IPO.
"That would be very, very unusual for a book runner to do that," he said.
The lower revenue projection came shortly before the IPO was priced at $38 a share, the high end of an already upwardly revised projected range of $34-$38, and before Facebook increased the number of shares being sold by 25 percent.
The much-anticipated IPO has performed far below expectations, with the shares barely staying above the $38 offer price on their Friday debut and then plunging on Monday.
Companies do not make their own financial forecasts prior to an IPO, and underwriters are generally barred from issuing recommendations on the stock until 40 days after it begins trading. Analysts often rely on guidance from the company in building their forecasts, but companies doing IPOs are not permitted to give out material information that is not available to all investors.
Institutions and major clients generally enjoy quick access to investment bank research, while retail clients in many cases only get it later. It is unclear whether Morgan Stanley only told its top clients about the revised view or spread the word more broadly. The firm declined to comment when asked who was told about the research.
"It's very rare to cut forecasts in the middle of the IPO process," said an official with a hedge fund firm who received a call from Morgan Stanley about the revision.
(Editing by Jonathan Weber, Martin Howell and Ian Geoghegan)
#197
The sizzle in the Steak
Remember..........."buying" the Facebook IPO was not "investing"....it was "speculating".
Apples and Oranges.
Apples and Oranges.
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1Louder (05-22-2012)
#198
new low (so far) of $30.98
Why is the price falling?
MS, JPM, and GS really had to prop up the stock on day 1.
MS's $6.16bn + JPM's $3.2bn + GS's $2.4bn = $11.76bn.... So they owned about 73.5% of the shares at one point?
I wonder if they were the ones who caused the price to drop on Monday by selling a good chunk of their shares.
Why is the price falling?
It looks like the Nasdaq fiasco or the inflated opening price may only have been minor factors. According to reports, it was actually the company’s main underwriter that lost confidence in the Facebook’s profitability, and that, as one investor put it, “freaked a lot of people out.”
According to Reuters, in the run-up to Facebook’s IPO, Morgan Stanley told its big clients that the bank’s consumer Internet analyst, Scott Devitt, was significantly reducing his revenue forecasts for the social network. The reduction, which came during the company’s super-hit road show, was a big shock to investors.
The change in Morgan Stanley’s estimates came after Facebook’s filing with the U.S. Securities and Exchange Commission that expressed caution over its revenue growth due, especially in the mobile arena. JPMorgan Chase and Goldman Sachs also revised their estimates.
Devitt reportedly cut his revenue estimate for the current quarter as well as the full year, though his exact figures are not known.
“They definitely lowered their numbers and there was some concern about that,” IPO Boutique’s Scott Sweet told Reuters. His client, he said, still bought the issue but “flipped his IPO allocation and went short on the first day.”
News of the estimate cut was passed on only to a handful of big investor clients, not everyone else who was considering an investment in Facebook.
It's likely that news of these estimate cuts dampened interest in the IPO among those who heard about them.
In other words, during the marketing of the Facebook IPO, investors who did not hear about these underwriter estimate cuts were placed at a meaningful and unfair information disadvantage. They did not know what a lot of other investors knew, and they suffered for it.
According to Reuters, in the run-up to Facebook’s IPO, Morgan Stanley told its big clients that the bank’s consumer Internet analyst, Scott Devitt, was significantly reducing his revenue forecasts for the social network. The reduction, which came during the company’s super-hit road show, was a big shock to investors.
The change in Morgan Stanley’s estimates came after Facebook’s filing with the U.S. Securities and Exchange Commission that expressed caution over its revenue growth due, especially in the mobile arena. JPMorgan Chase and Goldman Sachs also revised their estimates.
Devitt reportedly cut his revenue estimate for the current quarter as well as the full year, though his exact figures are not known.
“They definitely lowered their numbers and there was some concern about that,” IPO Boutique’s Scott Sweet told Reuters. His client, he said, still bought the issue but “flipped his IPO allocation and went short on the first day.”
News of the estimate cut was passed on only to a handful of big investor clients, not everyone else who was considering an investment in Facebook.
It's likely that news of these estimate cuts dampened interest in the IPO among those who heard about them.
In other words, during the marketing of the Facebook IPO, investors who did not hear about these underwriter estimate cuts were placed at a meaningful and unfair information disadvantage. They did not know what a lot of other investors knew, and they suffered for it.
MS, JPM, and GS really had to prop up the stock on day 1.
Company filings after the market closed on Friday night however revealed the extent to which the banks who led Facebook’s initial public offering - in which $16bn of shares were sold to new investors - were forced to move in to the market and buy shares in order to keep the price above the $38 level.
Morgan Stanley, Facebook’s lead financial adviser, ended the day with 162m shares, worth $6.16bn. Other banks including JP Morgan and Goldman Sachs also bought shares, ending the day with $3.2bn and $2.4bn holdings respectively.
Morgan Stanley, Facebook’s lead financial adviser, ended the day with 162m shares, worth $6.16bn. Other banks including JP Morgan and Goldman Sachs also bought shares, ending the day with $3.2bn and $2.4bn holdings respectively.
I wonder if they were the ones who caused the price to drop on Monday by selling a good chunk of their shares.
#199
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#200
Senior Moderator
Dude, why are you so upset? Surely you could not have believed the "hype" that came about, right?
Their business model was flaky at best and even then, many people (on here and elsewhere) were throwing red flags at the starting price.
No offence, if there was really such thing as "easy money"? I'd be sitting with BoostedJack somewhere on my own tropical island country that I bought long ago.
Their business model was flaky at best and even then, many people (on here and elsewhere) were throwing red flags at the starting price.
No offence, if there was really such thing as "easy money"? I'd be sitting with BoostedJack somewhere on my own tropical island country that I bought long ago.