Facebook IPO

Facebook advised analysts for underwriters to reduce revenue and earnings forecasts, sources said.

Regulators are examining whether Morgan Stanley selectively informed clients of an analyst's negative report.

Investors expressed disappointment, skepticism and even shock on Tuesday after learning that an analyst at lead underwriter Morgan Stanley cut Facebook revenue forecasts just before the company's IPO.

If you were thinking of picking up a few shares of Facebook last week, when it went public at a price of $38, you might be seriously tempted now that the stock has fallen nearly 20 per cent or $7 in two days. But forget the dramatic drop. Investors should focus on the only question that matters: How much money will Facebook earn over the next several years, and is that enough to justify its market value right now?

Nasdaq has been sued by an investor who claimed the exchange was negligent in handling orders for Facebook shares following its IPO, causing losses for investors.

Facebook's shares hit a low of $30.98 on Tuesday, 8.9 per cent below Monday's close, a loss of 18 percent from their $38 IPO price.

Nasdaq faces short-term costs from its botched handling of Facebook shares on their first day of trading but the longer term repercussions could be more expensive.

Facebook Inc's underwhelming debut on Wall Street increases the pressure on the social networking giant to deliver stellar growth - a novel situation for Chief Executive Mark Zuckerberg, who has been clear he is more interested in building products than making money. Facebook shares fell 11 per cent on Monday, due to overly aggressive pricing by Facebook's underwriters, as well as a decision to expand the size of the offering.

The downward spiral has left some people sitting on big losses, and others scratching their heads.

There are a large number of orders that were entered on Friday but had not been reconciled.

Without that same level of defense, its shares fell $4.64 to $33.67 in the first minutes of trading. That represented a decline of more than 12 per cent from Friday's close and about 24.4 per cent from the intra-day high of $45 a share. Volume was again massive with more than 52 million shares trading hands in 15 minutes. Nearly 581 million shares were traded on Friday in the five or so hours that the stock was open.

The social networking company's debut was marred by a shaky opening on the Nasdaq.

Newly issued shares in Facebook Inc may have a hard time in the coming week if lead underwriter Morgan Stanley stops supporting the stock

Getting married was a smart business move as well as a personal milestone for Facebook chief Mark Zuckerberg. Here is why.

Shares in Facebook could fall below the initial public offering price of $38, Barron's wrote in its May 21 edition.

Facebook's stock was expected to start trading at 11 a.m. but didn't open until 11:32 a.m.

Facebook CEO Mark Zuckerberg announced his wedding to Priscilla Chan on Saturday through a status update.

Facebook Inc underwriter Morgan Stanley took a bet earlier this week when it increased the size of the social networking firm's $16 billion initial public offering and it boosted the price.

Social media stocks slumped as traders used the securities to hedge or bet against Facebook.