Facebook IPO - Bang or Bust?

Facebook IPO - Bang or Bust?

What was once deemed as the potential for one of the biggest stocks to hit Wall Street since Apple and Google has now become a huge controversy that has created speculation of foul play among investors and company insiders. Facebook’s recent IPO was initially met with excitement and hope for retail investors that were looking to get a piece of a company that is now valued at more than 100 billion dollars. Unfortunately, their hopes were crushed as the Facebook IPO opened at a staggering $38. To make matters worse, it wasn’t until the price of a share hit $45 that retail investors were actually able to get in on the action. Now, the stock is sitting at a measly $31, lower than its initial offering in the first place. While we’ve seen stocks come back from bigger deficits, there’s been lots of debate as to the ethics behind the Facebook IPO that could change Wall Street forever.

Morgan Stanley, who played the part of underwriter for Facebook, is being accused of tipping big investors that it would cut estimates for revenue in the upcoming year. Even while doing so, it continued to raise the price of an already expensive IPO. If you didn’t have 10 million dollars laying around in your brokerage account, you were left to wait until the price had already skyrocketed to $45 per share.

This not only has huge impacts on Facebook and the future of the stock, which already has to recover nearly 20% of its losses, but on the future of other stocks as well. As IPOs get released, it’s understood that any news regarding the stock is public information right off the bat. If investors feel that news is being withheld from them, or only disclosed to larger investors, people could easily be dissuaded from buying more IPOs in the future. Additionally, this could have serious impact on the success of Morgan Stanley. By covering up vital news regarding a stock and still raising prices, ethics and morals will both be questioned for their future releases.

This isn’t to say that the Facebook IPO could actually recover from the downward spiral it seems to have hit, but they’ve got a long road to go now. Mark Zuckerberg needs to step forward and be the same aggressive person he has always been to come up with new and fresh ideas to completely beat out next year’s estimates.

Cyberwarfare - The Future of War
Lumiron - Quality LED Lighting

Related Posts

By accepting you will be accessing a service provided by a third-party external to https://finalwebdesign.com/

Popular Blog Posts

Administrator
05 May 2012
Marketing Blog
Most people and businesses who have a website have one main goal in mind…to attract new visitors and prospective customers. While the idea of many websites is to drive revenue through e-commerce, all ...
Administrator
10 June 2018
Tech Blog
Nearly every business is in a constant pursuit for new customers and clients. The internet has opened up a new world of possibilities in that pursuit of more business. Because every successful company...
Administrator
06 October 2012
Tech Blog
The iPhone 5 vs. the Samsung Galaxy 3: and the winner is… Comparing the superiority of one smart phone over the other really depends on what camp you’re in: Apple or Android? Making comparisons betwee...
Administrator
20 February 2013
Tech Blog
It appears that popcorn is about to lose its throne as the most popular companion among TV viewers. A new app cashes in on TV viewers who simultaneously text on their mobile devices. It is making TV v...
Administrator
25 November 2012
Tech Blog
Former General David Petraeus becomes one of the more than 7,969 Google users whose personal data has been usurped by the government for investigative purposes. In the first six months of 2012 alone, ...
Administrator
23 May 2019
Web Design Blog
Code Editors offer a great tool for programmers to develop websites and software through coding. With popular code editors such as Adobe Dreamweaver and Visual Studio Code, programmers have a much eas...
Administrator
17 October 2012
Web Design Blog
Firefox- friendly- web developers are celebrating the long awaited official imprimatur from Mozilla Firefox 16’s browser support encompassing much of its HTML5 platform. Embedded with far fewer change...

Fields marked with * are required

Contact Final Web Design Today!

Call Today: Call us local at 305-349-3208 or nationally at 888-674-7779.

Email Us: Email us a message at "[email protected]" or fill out the contact form below and we will respond

Name:*
Email:*
Phone:
Project Details:
Expertise Certification Google Partners Bing Elite Agency BBB Accredited Business INC 500
Wordpress Joomla Drupal Magento Dreameaver