Day 3: Facebook Falls
"I've never seen that before in 10 years..."
As I reported here:
Wedbush just started Facebook with an outperform rating before the IPO even materializes, and Stern Agee initiated coverage with a Buy rating. But these initiated buys are just too funny — and blatantly consistent with the theme of the shills.
You know that. I know that. And they know that.
Remember when Motor Trend magazine gave the Chevy Volt its “Car of the Year” award before the car pulled off the assembly line?
Remember how much of an embarrassment it must have been for the magazine when the car became an abysmal failure?
Well, Facebook's fate will likely be worse than the Chevy Volt...
And it was worse. It was a disaster.
The stock got down to $30 a share this morning... and could fall even more.
Nice call, Wedbush and Stern Agee. Your clients must be thrilled with your advice.
Here's what's interesting.
Lead underwriter, Morgan Stanley cut its revenue forecast for the company shortly before the IPO.
“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,” says Reuters.
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