Facebook (FB) is initiated at Underperform with a $25 price target at Bernstein. It could be...

Facebook (FB) is initiated at Underperform with a $25 price target at Bernstein. It could be awhile, they say, before investors have clarity about Facebook's ability to monetize what it has as well the impact of new opportunities. Shares -2.2% premarket.

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Comments (9)
  • credit_man
    , contributor
    Comments (180) | Send Message
    funny to notice that there is now a consensus on FB valorisation between 50 and 80 bil....
    why havent we heard about it before the IPO?
    its all smoke and mirrors.....
    4 Jun 2012, 07:33 AM Reply Like
  • Sebanightwish
    , contributor
    Comments (1132) | Send Message
    I feel sorry for retail investors who fell into this trap new Morgan Stanley and Company. I think that even the Zuckerberg ends up being a victim of this placement is now complicating the valuation told him he had his company.
    The SEC should investigate and punish all executives of Morgan Stanley, and others for this placement shameful and fraudulent.
    4 Jun 2012, 08:32 AM Reply Like
  • Gutone
    , contributor
    Comments (438) | Send Message
    What trap? If Facebook were $50 now, it is no longer a trap? Investors of Facebook took a bad bet and this is the outcome.
    4 Jun 2012, 02:17 PM Reply Like
  • Sebanightwish
    , contributor
    Comments (1132) | Send Message
    And Morgan Stanley withheld information about the numbers of Facebook ... it's not trap??
    4 Jun 2012, 09:05 PM Reply Like
  • Minutemen
    , contributor
    Comments (2273) | Send Message
    Actually, it wasn't Moran Stanley who withheld the new information that FB's 2Q earnings would be lower than expected, it was FB that did not report the info publically AFTER reporting it to Morgan Stanley. FB is completely at fault here. They should have either 1) not said anything and just let the 2Q earnings be what they will be or 2) reported the new info to everyone.
    5 Jun 2012, 07:44 AM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
    Investors who bought in took a risk - many knew it was a badly priced IPO and stayed away. To bail out the initial IPO entrants now is just crony capitalism exemplified.
    4 Jun 2012, 09:22 AM Reply Like
  • Minutemen
    , contributor
    Comments (2273) | Send Message
    I read many, many analyst reports before the IPO warning investors to stay away from FB and that it was overvalued. Investors did not heed the warnings and got burned. Thus they should not be crying foul now.
    4 Jun 2012, 09:30 AM Reply Like
  • kwm3
    , contributor
    Comments (2454) | Send Message
    We saw the high valuation mania back in 1998-2001 and know the result. And still we have Linked in and Amazon hanging in there.
    4 Jun 2012, 10:05 AM Reply Like
  • the details
    , contributor
    Comments (25) | Send Message
    Ever wondered why FB rushed to increase the IPO volume by 25% (84 M shares!) just two days before the IPO? Not because the company made some exciting new expansion plans overnight and needed more funds. In fact, all of these additional stocks were sold by insiders, including Mark Z. himself who's remaining voting power went down from 57.3% to 55.8% as a result of this last minute change. Most likely, some of these insiders thought it might be a very long time before the stock will sell again at this high price. I tend to believe them.
    5 Jun 2012, 10:29 AM Reply Like
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