InfoAnda - Insight: Morgan Stanley cut Facebook estimates just before IPO |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Sony names Hirai president and CEO, replacing Stringer | | 1 February 2012
US-TECH Summary | 19 October 2010
Cartoon Network reviving "Looney Tunes" | 22 April 2010

Wild Oats XI ploughs on in Sydney Hobart after hitting shark | 27 December 2008

Forum Views () Forum Replies ()

Read more with google mobile : Insight: Morgan Stanley cut Facebook estimates just before IPO |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Frederick Kempe Christopher Papagianis Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (10) Slideshow Video Counterparties: Today's Best Links An industry's "decades-long deception" The fire retardant industry engaged in a decades-long deception about its products, which are often filled with cancerous materials, the Chicago Tribune reports. Read more at Counterparties The euro zone's slow-motion bank run CEO pay now slightly more rational Sign up for the Counterparties newsletter! Follow Reuters Facebook Twitter RSS YouTube Read Jessica's got to connect to win, says "Idol" mentor Iovine 21 May 2012 Insight: Morgan Stanley cut Facebook estimates just before IPO | 3:26am EDT Exclusive: U.S. lets China bypass Wall Street for Treasury orders 21 May 2012 McDonald's Vandalized: Onions on Burgers Send TN Men on McRampage 21 May 2012 Facebook stock slide puts new pressures on company 21 May 2012 Discussed 167 Iran attack decision nears, Israeli elite locks down 135 Exclusive: U.S. lets China bypass Wall Street for Treasury orders 119 Obama presses ailing Europe to focus on growth Watched A look at the UK’s most beautiful face Thu, May 10 2012 Apple plans fatter iPhone 5 to choke market-hungry Samsung Thu, May 17 2012 Obama raises concerns about al Qaeda in Yemen Mon, May 21 2012 Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Quake in Italy A strong earthquake rocked a large swathe of northern Italy. Slideshow Anti-NATO clashes Police officers and protesters clash outside the NATO summit in Chicago. Slideshow Insight: Morgan Stanley cut Facebook estimates just before IPO Tweet Share this Email Print Related News Facebook shares sink 11 percent as reality overtakes hype 1:33am EDT Wall Street rebounds, but investors dump Facebook Mon, May 21 2012 Some investors still await confirmation on Facebook orders Mon, May 21 2012 Historic Facebook debut falls short of expectations Fri, May 18 2012 Messy Facebook debut marks weak day on Wall Street Fri, May 18 2012 Analysis & Opinion Nasdaq howler can’t explain Facebook flop for long Facebook’s poor, huddled masses Related Topics Tech » Media » Facebook » Related Video Facebook stock dips further on day two - Decoder 2:43am EDT 1 of 2. Facebook Inc. CEO Mark Zuckerberg is seen on a screen televised from their headquarters in Menlo Park moments after their IPO launch in New York May 18, 2012. Credit: Reuters/Shannon Stapleton By Alistair Barr Tue May 22, 2012 3:26am EDT (Reuters) - In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company. The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion. The change in Morgan Stanley's estimates came on the heels of Facebook's filing of an amended prospectus with the U.S. Securities and Exchange Commission (SEC), in which the company expressed caution about revenue growth due to a rapid shift by users to mobile devices. Mobile advertising to date is less lucrative than advertising on a desktop. "This was done during the roadshow - I've never seen that before in 10 years," said a source at a mutual fund firm who was among those called by Morgan Stanley. JPMorgan Chase and Goldman Sachs, which were also major underwriters on the IPO but had lesser roles than Morgan Stanley, also revised their estimates in response to Facebook's May 9 SEC filing, according to sources familiar with the situation. Morgan Stanley declined to comment and Devitt did not return a phone message seeking comment. JPMorgan and Goldman both declined to comment. Typically, the underwriter of an IPO wants to paint as positive a picture as possible for prospective investors. Investment bank analysts, on the other hand, are required to operate independently of the bankers and salesmen who are marketing stocks - that was stipulated in a settlement by major banks with regulators following a scandal over tainted stock research during the dotcom boom. The people familiar with the revised Morgan Stanley projections said Devitt cut his revenue estimate for the current second quarter significantly, and also cut his full-year 2012 revenue forecast. Devitt's precise estimates could not be immediately verified. "That deceleration freaked a lot of people out," said one of the investors. Scott Sweet, senior managing partner at the research firm IPO Boutique, said he was also aware of the reduced estimates. "They definitely lowered their numbers and there was some concern about that," he said. "My biggest hedge fund client told me they lowered their numbers right around mid-roadshow." That client, he said, still bought the issue but "flipped his IPO allocation and went short on the first day." "VERY UNUSUAL" Sweet said analysts at firms that are not underwriting IPOs often change forecasts at such times. However, he said it is unusual for analysts at lead underwriters to make such changes so close to the IPO. "That would be very, very unusual for a book runner to do that," he said. The lower revenue projection came shortly before the IPO was priced at $38 a share, the high end of an already upwardly revised projected range of $34-$38, and before Facebook increased the number of shares being sold by 25 percent. The much-anticipated IPO has performed far below expectations, with the shares barely staying above the $38 offer price on their Friday debut and then plunging on Monday. Companies do not make their own financial forecasts prior to an IPO, and underwriters are generally barred from issuing recommendations on the stock until 40 days after it begins trading. Analysts often rely on guidance from the company in building their forecasts, but companies doing IPOs are not permitted to give out material information that is not available to all investors. Institutions and major clients generally enjoy quick access to investment bank research, while retail clients in many cases only get it later. It is unclear whether Morgan Stanley only told its top clients about the revised view or spread the word more broadly. The firm declined to comment when asked who was told about the research. "It's very rare to cut forecasts in the middle of the IPO process," said an official with a hedge fund firm who received a call from Morgan Stanley about the revision. (Editing by Jonathan Weber, Martin Howell and Ian Geoghegan) Tech Media Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (10) bd55555 wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Tuesday, 22 May 2012
Italy police close in on school bombing suspect |
UK's Cameron urges euro zone action |
Exclusive: U.S. lets China bypass Wall Street for Treasury orders |
Comic Grillo shakes up Italian politics with shock win |
At least 11 Albanian university students killed in bus crash |
Mali president beaten during palace occupation |
Apple, Samsung CEOs in U.S. court talks on patents |
Whitney Houston's last record released for Sparkle |
Cannes film festival abuzz as dark tales shine |
Alain Resnais revisits classic Greek legend at Cannes |
Michael Jackson is still Bad, 25 years after album |
Jessica's got to connect to win, says Idol mentor Iovine |
Antiviral brings Cronenberg father-son act to Cannes |
Bardem shows plight of Saharawi in film documentary |
Putin shifts former ministers to Kremlin |
Greeks embrace some new myths about life with the euro |
Two dead in Beirut clashes after killing of anti-Assad cleric |
Bulgarian capital shaken by 5.6 magnitude quake |
Hollande's euro arguments nonsense: Austria's Fekter |
Facing edgy vote, Egypt army hikes diesel imports |
New Zealand to ban foreign-flagged fishing boats |
Ruling party candidate claims win in Dominican vote |
Obama sketches four-pronged strategy for Europe, sees EU consensus |
Insight: Morgan Stanley cut Facebook estimates just before IPO |
Apple still dominates world's top brands: study |
Facebook shares sink 11 percent as reality overtakes hype |
Apple seeks support for new spaceship-like campus |
Silicon Valley takes Facebook fizzle in stride |
House bows out with a funeral and plenty of twists |
Hunger Games village up for auction |
Alain Resnais revisits classic Greek legend at Cannes |
Antiviral brings Cronenberg father-son act to Cannes |
Exclusive: Tunisia to extradite former Gaddafi PM to Libya |
Afghans back Chicago deal, warn West to keep promises |
Insight: EU foreign policy chief Ashton stays out of the spotlight |
IAEA chief says nears deal with Iran ahead of 6-power talks |
Egypt underclass finds voice, voting against misery |
Mali coup leader condemns president beating |
Bissau junta says hands power back to civilians |
South Sudan says Sudan bombs, shells its territory |
Ukraine plans Euro crowd control, prostitution a problem |
Facebook drops again as pressure to perform mounts |
Google names new Motorola Mobility CEO |
After Yahoo deal, challenges abound for Alibaba |
Brad Pitt mob movie portrays broken American dream |
Singer Pete Doherty's film debut dubbed a crime |
Royal Opera's Falstaff: Big knight on a big horse |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01