Facebook Stock closed at $31.00 today.
There are some interesting developments on the Facebook stock story I have been covering over the past few days. Wallstreet Dealbook has reported the following.
As I mentioned yesterday in my previous report on the Facebook question, both the SEC and FINRA are indeed questioning Morgan Stanly, Facebook and NASDAQ. With all the news coming out, questions about the integrity of the market are being pursued.
Image via CrunchBase
As of 2:46p today, the stock is trading down once again at $31.63 down from yesterday’s close at $34.14. It just keeps on dropping. Shares dropped 11% yesterday as investors sold off their stock and the big banks stopped propping up the share price.
Earlier today, Reuters revealed that Morgan Stanley’s, the primary underwriter of the stock, Scott Devitt adjusted his revenue forecast for the stock before the launch of the IPO. Morgan Stanley bankers ignored advice from its own people who advised that demand was being overestimated leading up to the IPO, Wallstreet Dealbook reports. Here is the questionable actions that beg the question of stock manipulation.
Once again, Facebook’s stock was down 6% in early trading and continues to fall as the day goes on.
If the market is not allowed to truly determine the value of a stock, is the value being quoted real?
Have Facebook executives created hype around value that is not there? This is very possible considering these are the folks willing to buy Instagram for $1 billion and at one time threw out a valuation for Twitter that made no sense too. It seems some investors are waking up and starting to off-load their stock.
Dealbook reports: “It’s a combination of Zuckerberg’s ego for that $100 billion market cap, and the shareholders selling who wanted an exit,” an analyst tells Bloomberg. “Somehow it just missed them that this was mispriced.”
Let’s see where this all goes. Is a social media bubble coming?
Paul is an Internet consultant and President of TLL Ventures LLC. TLL Ventures is a small Internet marketing firm working with companies to maximize opportunities in eCommerce, business blogging, social media and search engine optimization to dominate their markets. My interests are in Entrepreneurial pursuits, soccer, music, and travel.
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