Oh crap! Facebook shares sank further Tuesday amid new accusations that key underwriters had cut their forecasts for the company just days before Friday's initial public offering.
Facebook shares lost another 8.6 percent Tuesday, closing at $31.12, leaving them 18.1 percent below the IPO price.
The shares continued to fall in after-hours trade, falling to as low as $30.72, as analysts and investors concluded that the $16 billion, 421 million shares IPO was just too big for the real demand and that major early institutional investors had not intended to hold on to them.
On Tuesday reports surfaced that Morgan Stanley and two other key underwriters, JP Morgan and Goldman Sachs, had cut the forecasts they provided to their customers days before the issue.
Tuesday, May 22, 2012
Saturday, May 19, 2012
Facebook debut as a public company closes nearly flat
Facebook's IPO, turns out to be a bust. It was expected to be big but that didn't happen. One of the most anticipated IPOs in Wall Street history ended on a flat note Friday, with Facebook's stock closing at $38.23, up 23 cents from Thursday night's pricing. For all the hype and expectations, many are seeking a big first day pop in Facebook's share price, the increase of six-tenths of one per cent was a big letdown.
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