News Update :

Facebook stocks end flat in IPO debut

Wednesday, May 23, 2012

Investors continued to de-friend Facebook as questions swirled around his highly anticipated - and, for some, very disappointing - IPO.

The company, its investment banks and the Nasdaq were carefully considered increasingly since its first social network bid fizzled out on Friday.

Reports emerged late Monday that an analyst at lead underwriter of the transaction, Morgan Stanley, had cut its revenue forecast for the company before the IPO information, some investors may not have obtained.

Other underwriters JPMorgan Chase and Goldman Sachs also revised their estimates ahead of the IPO, sources told Reuters.

This was after a deposit Facebook said its turnover announcement has not been keeping up with his winnings in the number of users.

Massachusetts has issued a subpoena to Morgan Stanley analysts regarding discussions on revenue of Facebook with some investors.

Officials with both the Financial Industry Regulatory Authority and the Securities and Exchange Commission said that the issue may need revision.

Facebook has dropped from 9% to $ 31 on Tuesday, after dropping below their IPO price of $ 38 the day before.

Facebook ended almost flat on Friday, crushing hopes for a healthy pop. Some investors blamed Morgan Stanley, saying that the stock price too high and sold shares too many. Other faults sloppy trading on Nasdaq.


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