Alistair's Feed
May 22, 2012

Morgan Stanley cut Facebook estimates just before IPO

May 22 (Reuters) – In the run-up to Facebook’s (FB.O: Quote, Profile, Research) $16
billion IPO, Morgan Stanley (MS.N: Quote, Profile, Research), 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 Facebook’s initial public
offering – while an investor road show was under way – was a big
shock to some, said two investors who were advised of the
revised forecast.

May 22, 2012

Insight: Morgan Stanley cut Facebook estimates just before IPO

By Alistair Barr

(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.

May 19, 2012

Social media stocks hammered as Facebook debuts

NEW YORK (Reuters) – Social media stocks, led by Zynga Inc (ZNGA.O: Quote, Profile, Research), slumped in volatile trading as traders used the securities to hedge or bet against the star of the sector, Facebook Inc (FB.O: Quote, Profile, Research), which went public in a disappointing debut on Friday.

Facebook shares rose to a high of $45 in early trade but lost steam and closed at $38.23, up less than 1 percent. Analysts blamed the poorer-than-expected first-day showing on the vast number of shares floated, a rich valuation and market weakness.

May 18, 2012

QUOTEBOX: Facebook – Views from the Valley

SAN FRANCISCO (Reuters) – Facebook Inc began trading on the Nasdaq on Friday, becoming the first American company to debut with a valuation above $100 billion.

The debut — marred by technical hiccups and the lack of the first-day bounce in the share price that many had expected — marks the formal ascension of the No. 1 social network to the ranks of Silicon Valley technology powerhouses.

May 18, 2012

Facebook: Views from the Valley

SAN FRANCISCO, May 18 (Reuters) – Facebook Inc began
trading on the Nasdaq on Friday, becoming the first American
company to debut with a valuation above $100 billion.

The debut — marred by technical hiccups and the lack of the
first-day bounce in the share price that many had expected —
marks the formal ascension of the No. 1 social network to the
ranks of Silicon Valley technology powerhouses.

May 18, 2012

Social media stocks knocked as Facebook debuts

NEW YORK (Reuters) – Social media stocks, led by Zynga Inc (ZNGA.O: Quote, Profile, Research, Stock Buzz), dropped in volatile trading as traders used the securities to hedge or bet against the day’s star of the sector, Facebook Inc (FB.O: Quote, Profile, Research, Stock Buzz), which went public in a somewhat disappointing debut on Friday.

Facebook shares rose 8.5 percent to $41.25 in afternoon trading. Analysts blamed the poorer-than-expected first-day showing of Facebook on the vast number of shares floated and market weakness.

May 18, 2012

Shorting Facebook on first day: Only for the brave

NEW YORK, May 18 (Reuters) – Shorting the Facebook IPO on
its first day of trading is not for the faint of heart, but some
traders are trying.

As the hottest initial public offering in recent memory,
Facebook has drawn 1990s-style tech-mania interest from
mom and pop investors and big institutions alike.

May 18, 2012

Shorting Facebook on first day: Tough even for the gutsiest

NEW YORK (Reuters) – Shorting the Facebook IPO on its first day of trading will not be for the faint of heart.

As the hottest initial public offering in recent memory, Facebook has drawn 1990s-style tech-mania interest from mom and pop investors and big institutions alike.

May 18, 2012

Facebook wraps up IPO, set for big Friday pop

NEW YORK/SAN FRANCISCO (Reuters) – Facebook Inc priced its initial public offering at the top of its target range to raise more than $16 billion, as strong demand, particularly from retail investors, fuels anticipation of a big pop in the stock when it begins trading Friday on the Nasdaq.

Predictions of how much the stock will rise on its first day of trade vary greatly — some experts said the high IPO price and increased float could limit gains to 10 percent to 20 percent, while others said anything short of a 50 percent jump would be disappointing given the hype.

May 18, 2012

Facebook prices at top of range in landmark IPO

NEW YORK/SAN FRANCISCO (Reuters) – Facebook Inc priced its initial public offering at the top of its target range to raise more than $16 billion (10.13 billion pounds), as strong demand, particularly from retail investors, fuels anticipation of a big pop in the stock when it begins trading Friday on the Nasdaq.

Predictions of how much the stock will rise on its first day of trade vary greatly — some experts said the high IPO price and increased float could limit gains to 10 percent to 20 percent, while others said anything short of a 50 percent jump would be disappointing given the hype.