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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: More of a rant than a question...

“...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...”

So you’ve got the lead underwriter dumping on it a day before launch................

It had a P/E of 118.........................

Even at $ 0.30 cents it would have a market cap of $1 BILLION! It’s got a long way to fall. It was down almost 20% in the first 2 days of trading....Some institutions were shorting it DAY ONE.

Youtube went for $1.65 Billion.

But then Google was flagged as ridiculous at $300 8 years ago....It’s now $600............................
Read Answer Asked by Art on May 22, 2012