Morgan Stanley Praised for Facebook IPO by COOBy: Shawn Hess - May 31, 2012
Morgan Stanley Chairman and Chief Executive, James Gorman is defending the work they did on the Facebook IPO, claiming they played it 100% by the book and that also, he isn’t aware of any dissent regarding Facebook share prices or anything else, as far as the underwriters are concerned.
In fact, last Friday, Facebook’s chief operating officer, Sheryl Sandberg called Gorman to thank him for his efforts on the IPO and offer his firm a professional reference.
Gorman further explained that the mass confusion which took place the morning of the IPO was indeed due to a technological problem originating from Nasdaq’s market systems and not anything to do with operations at Morgan Stanley. He also cites the financial crisis in Greece as a potential cause for Facebook’s poorly performing stocks.
Furthermore he urged investors and the general public to view the share prices from a twelve-month perspective rather than just seeing the short term. Gorman explains his perspective, “Facebook is a great company and will still be in so in a few months”.
While Morgan Stanley has made efforts to review trades from the IPO launch date and give their clients the best possible prices despite the computer glitch from Nasdaq. Though some investors in New York and California have already filed lawsuits regarding a revised financial reports which failed to surface just days before the IPO launch.
Facebook shares are currently being traded on the Nasdaq for around $28 and have been on a steady downward path since the IPO launch on the 18th of May. Meanwhile, Facebook continues to expand their operations into other nations and address their shortcoming in mobile advertising in an effort to increase their bottom line.