Ahead of Facebook's $16bn IPO, Morgan Stanley, the lead underwriter on the deal, reduced its revenue forecasts for the social network, Reuters reports.
The bank's consumer internet analyst, Scott Devitt, cautioned on the stock in a surprise move so close to the listing. Two investors who were advised of the revised forecast said it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10% below the IPO price. The $38 per share IPO price valued Facebook at $104bn. The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the US Securities and Exchange Commission (SEC), in which the company expressed caution about ...
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