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Facebook Stock Closes at $32 on Wednesday

Stock prices remain in the $30 range as the Facebook IPO scandal unfolds

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Facebook Stock Closes at $32 on Wednesday
[ Business]

Facebook stock is once again closing in the $30 price range at $31.99 as the Nasdaq market closed at 4PM today. It opened at $31.37, rose as high as $32.50, and dipped as low as $31.36. So not a lot of variety there. Of course, the stock prices themselves haven’t really been the news as far as the Facebook IPO goes.

Earlier today we found out that regulators are undertaking an investigation to find out what happened with a revised forecast that was drafted last week showing Facebook having diminished revenues for the remainder of 2012. Apparently, Morgan Stanley concealed the report as Facebook’s IPO roadshow raised investor interest, but tipped off a select few about the reduced forecast just before the IPO.

We also learned that several major Facebook shareholders have filed lawsuits against Facebook and its underwriters for suppressing the reports and allowing them to make what otherwise might be called “bad investments”. The state of Massachusetts has also launched an investigation of the events and has subpoenaed documents relating to the revised forecast.

To make matters worse, the Securities and Exchange Commission says they are also looking into several issues surrounding the Facebook IPO. I believe their focus is centered on the revised forecasts as well, but also Facebook’s S-1 documents and Nasdaq’s communication issue at the beginning of trading on Friday.

Aside from that, Morgan Stanley has also announced they will be reviewing every trade from Friday’s IPO launch and adjusting the trades to reflect the fairest market price. So that’s some good news for Facebook investors.

All and all, things really aren’t looking that great for Facebook and their biggest underwriters. Of course, we will be keeping track of all these IPO dealings and filling you in as news becomes available. Check back regularly for updates.

Facebook Stock Closes at $32 on Wednesday
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  • http://www.gravexwebservices.net Michael Burke

    Ladies and gentlemen, welcome to the dot com bubble of 2012.

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