Market Place has more info about Morgan Stanley, the underwriter, supporting the Facebook stock:
http://www.marketplace.org/topics/business/weekly-wrap-what-...
Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
31–40 of 64 posts
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#32I'm confused by this "greenshoe" business. To prevent the price of something from falling, you can: (1) Increase its demand. (2) Decrease its supply. Which one does the "greenshoe" do?
The greenshoe increases the demand. MS placed a 38.00 bid with an enormous size, so if you were to look at the live feed, you would have seen something like: Bid: 38.00 x 9999999 Ask: 38.01 x 1234
via gojomo http://news.ycombinator.com/item?id=3993727
http://lockerz.com/s/209964861
Bid (size): 38.00 (x9999900) Ask (size): 38.01 (x146300)Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#33Earlier quoted context omitted.
I honestly can't see them caring a whole lot. Scrutiny and bad press can only impact your stock prices in the short term; in the long run they'll revert to the mean. If Zuck and co. feel like facebook is a fundamentally strong bet, then they'll be inclined to ignore fluctuations in the price and look to the long term a la Amazon. Also, Zuck owns 57% of the voting shares, so it's not like he really gives a damn what t…
Well, I'm not sure this is true. You typically want to have a strong IPO to generate momentum for your company and shape the public's perception. Perhaps this is different because so much was trading in private markets before the IPO, but it does seem like perhaps they should have priced around the $36 range. Now the story over the weekend is "Facebook fails to live up to the hype" http://www.thenewstribune.com/2012/…
$2/share is a lot of money to leave on the table for a nice weekend of press.
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#34[deleted]
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#35Earlier quoted context omitted.
Well, I'm not sure this is true. You typically want to have a strong IPO to generate momentum for your company and shape the public's perception. Perhaps this is different because so much was trading in private markets before the IPO, but it does seem like perhaps they should have priced around the $36 range. Now the story over the weekend is "Facebook fails to live up to the hype" http://www.thenewstribune.com/2012/…
$2/share is a lot of money to leave on the table for a nice weekend of press.
Don't think it's just weekend press, and I don't think the investor community thinks of it that way either. It's sending a statement that they don't necessarily care about rewarding their investors. We won't really know what happens until MS isn't around to support the price.
I'm excited to see what happens when you have a company that explicitly lets investors know that they're out to build products, not manage investor relations.
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#36A well written article; interesting enough in spite of not having any quotable sources. A more accurate title might have been "Reuters shut-out; Facebook IPO bankers remain mum"
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#37Earlier quoted context omitted.
$2/share is a lot of money to leave on the table for a nice weekend of press.
Don't think it's just weekend press, and I don't think the investor community thinks of it that way either. It's sending a statement that they don't necessarily care about rewarding their investors. We won't really know what happens until MS isn't around to support the price. I'm excited to see what happens when you have a company that explicitly lets investors know that they're out to build products, not manage inve…
Isn't that what Jobs and Bezos have done?
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#38I love it. Stock pops after IPO, greedy bankers taking the company money. Stock doesn't pop, overhyped failure. I wonder what a successful IPO would look like. Price doesn't change, no trading volume?
No doubt. This is a huge win for Facebook, as the article sort of mentions. There's no money left on the table, Facebook got full value for their stock.
Short term yes. But it's a little like a concert that is able to extract the maximum amount of seat sales revenue but has a bunch of non-filled seats which don't look to good for people attending and writing about the concert. Or a half empty restaurant on Saturday night. The story is that the price had to be supported. I'm not sure that is the message that will be good long-er term with a thing that is sold on psychology as opposed to fundamentals.
After all there is no way people getting in on the IPO bought the stock at $38 thinking it wasn't going to go up the same day.
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#39Earlier quoted context omitted.
There is a 6 month lockup period.
3 months in this case[1] [1] http://www.inc.com/eric-markowitz/facebook-going-public-inve... , Ctrl+F for "90 days"
Then Facebook employees better hope the stock price doesn't fall to half of what it is now in 3 months.
Re: Morgan Stanley bought 63M Facebook shares ($2.3B) to create a floor around $38
#40I love it. Stock pops after IPO, greedy bankers taking the company money. Stock doesn't pop, overhyped failure. I wonder what a successful IPO would look like. Price doesn't change, no trading volume?
To me it all seems like part of the same problem: some banker pulls a number out of his ass as "the price". There should be an auction or market of some other kind to determine the price, because... well, markets are a pretty good mechanism for determining prices, usually much better than any one individual or small group.