Facebook stock is hovering around 31 now. How could what was hyped(by Media and Wall Street) as IPO of the century fall this way.
The Inside Story
The company pre-announced that its second quarter would fall short of analysts' estimates. However,
The information about the estimate cut was then verbally conveyed to sophisticated institutional investors who were considering buying Facebook stock, but not to smaller investors.
Good news - Morgan Stanley and Facebook may be investigated - http://www.businessinsider.com/...
FINRA chairman Richard Ketchum is looking at whether or not Morgan Stanley and Facebook shared negative news with institutional clients without telling the public at large.
SEC Chair Mary Shapiro made this vague statement: "I think there is a lot of reason to have confidence in our markets and in the integrity of how they operate, but there are issues that we need to look at specifically with respect to Facebook."
Bad News - History says they will get away with a slap on the wrist.