Banking, finance, and taxes
Facebook Deathwatch: Shares Rise on Lawsuits, Investigations, Short Sellers
Published:
Last Updated:
After tumbling about -26% in its first three days of trading, stock in Facebook Inc. (NASDAQ: FB) is up more than 3% just before noon today even as shareholder lawsuits and investigations mount against the company and its bankers and just about any other person or entity that had anything to do with the IPO. Maybe FB is one of those outfits that thrives on controversy.
A class-action suit on behalf of shareholders was filed in Manhattan this morning, the financial industry’s own watchdog, the Financial Industry Regulatory Authority (FINRA) is launching an investigation into the way banks communicated a cut in FB’s estimates, and shares in Morgan Stanely (NYSE: MS), FB’s lead underwriter, are down more than -2%. And short-sellers are chasing shares today too, as we noted earlier this morning. All before lunch.
Facebook is responding by testing a new design for its Timeline feature. Lawsuits and falling share prices are somebody else’s problems. At Facebook, there’s no time for such trivial matters.
Facebook has traded about 38 million shares this morning and shortly before noon the price is up 1.8% at $31.60.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
