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FaceBook Under $38 As Artificial Underwriter Support Ends

Tyler Durden's picture





 

About Face(book) took all of 24 hours. The FaceBook $38/share support freebie courtesy of Morgan Stanley is now gone. As of moments ago the stock was well below its IPO price and sliding. The humiliation for a Zuckerpunched Morgan Stanley, which is now funding its $70 million IPO fee with hundreds of millions in sales and trading losses, and which is scrubbing any mention of the FaceBook IPO from its pitchbooks, and of course the NASDAQ, is just soaring by the minute.

Recall: PeakBook

 


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Mon, 05/21/2012 - 08:16 | Link to Comment ihedgemyhedges
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Zuck got married Saturday.  That'll suck the life out of any entrepreneur.  Stock showing it now............

Mon, 05/21/2012 - 08:19 | Link to Comment dannyboy
dannyboy's picture

Ahh.. the problem with this cliff is there is no ambulance at the bottom.

I'll see ya all there.

Mon, 05/21/2012 - 08:22 | Link to Comment THX 1178
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faceplant

Mon, 05/21/2012 - 08:25 | Link to Comment Lost My Shorts
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Ya, only the in-crowd got shares at the offer price.  The rabble had to wait to buy it cheaper on Monday.

Mon, 05/21/2012 - 08:32 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Zuck got married Saturday.

 

I'm guessing he didn't consult his financial planner about that.

 

Mon, 05/21/2012 - 08:51 | Link to Comment t_kAyk
t_kAyk's picture

No, but I bet she did.

Mon, 05/21/2012 - 09:22 | Link to Comment Fish Gone Bad
Fish Gone Bad's picture

Anyone who did not get in at $38 can now buy all they want.

Mon, 05/21/2012 - 09:31 | Link to Comment malikai
malikai's picture

This suckerberg is going down.

Mon, 05/21/2012 - 09:48 | Link to Comment toady
toady's picture

Yep, it's true price discovery day. No artificial props today!

So what will it be? 28? 18? 8?

Mon, 05/21/2012 - 10:50 | Link to Comment malikai
malikai's picture

I think 8 is a good selling price.

Mon, 05/21/2012 - 09:22 | Link to Comment GMadScientist
GMadScientist's picture

Unless the pre-nup leaves her nothing but shares! LOL

Mon, 05/21/2012 - 08:45 | Link to Comment TheAntiBen
TheAntiBen's picture

Sadly, telling a Billionaire he's not as rich today just doesn't make me feel better.

Mon, 05/21/2012 - 08:25 | Link to Comment Colombian Gringo
Colombian Gringo's picture

Of course it is dropping. FB was grossly overpriced at 100 times earnings! And I guess they forgot to mention that the Chinese market is closed to them. Oooooops.

But don't worry, Zuckerberg will have more than enough funds to hoover up coke through that semitic honker.

Mon, 05/21/2012 - 08:34 | Link to Comment aerojet
aerojet's picture

They should have IPO'ed at $5.

Mon, 05/21/2012 - 08:33 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Re the Facebook founder's wedding, Jim Kunstler in his 'Clusterf*ck Nation' column:

« Mark Zuckerberg ... set himself up for one of fate's great pranks as FB stock goes to 99 cents while he's still on his honeymoon »

 

Mon, 05/21/2012 - 08:45 | Link to Comment AUD
AUD's picture

It'd be a laugh if he couldn't pay his bill at the luxury hotel.

Mon, 05/21/2012 - 08:49 | Link to Comment spanish inquisition
spanish inquisition's picture

Well, they don't have to worry about workers leaving because they are too rich anymore. Of course they aren't gonna be buying cars, yachts, mansions or jewelry. Fade all of that play, Bugatti to Buick maybe.

Mon, 05/21/2012 - 09:59 | Link to Comment RECISION
RECISION's picture

And CaliFORNia, don't forget them...

Wonder how this will hit their projected tax take...

Mon, 05/21/2012 - 08:55 | Link to Comment mendigo
mendigo's picture

Sounds like he has cashed-out.
Good for him
He can pretend to drive this horse while making other plans.

For the dumb money it will be raining pain for a while I suspect.
Who really bought this thing - even retail is not that dumb (well have not yet heard from roboT yet).
It smells of other-peoples-money.

Mon, 05/21/2012 - 17:08 | Link to Comment TraderTimm
TraderTimm's picture

I give the union about 1.5 years until she figures out 50% of SOMETHING is better than 50% of NOTHING. Perhaps even sooner, depending on the 'market'.

The best part about all of this is how it is deflating the over-hyped 'Social' marketing meme. Thank you, Facebook, thank you very much!

Mon, 05/21/2012 - 08:17 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Artificial Underwriter Support Ends

 

Who ordered that......seems almost like suicide to me!

 

 

Mon, 05/21/2012 - 08:21 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Given that we are just entering the age of Aquarius (water bearer), I suppose we will all be underwater soon enough.

FB leads the way.

FlounceBook, FlopTook, FleeceHook...

Fun-der-water! ;-)

ori

wisdom-for-warriors-6

Mon, 05/21/2012 - 08:26 | Link to Comment t_kAyk
Mon, 05/21/2012 - 08:50 | Link to Comment THX 1178
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+1 for anything Tool.

Mon, 05/21/2012 - 09:24 | Link to Comment GMadScientist
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$38 is not the rock I.....thought it would be...

Mon, 05/21/2012 - 08:18 | Link to Comment Dineroguru
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Good thing MS has a strong balance sheet...lol

Mon, 05/21/2012 - 08:19 | Link to Comment evolutionx
evolutionx's picture

FAcebook crashes


realtime price Frankfurt

http://www.mmnews.de/index.php/boerse/10087-facebook-unter-30

Mon, 05/21/2012 - 08:20 | Link to Comment ZippyBananaPants
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So, now is obviously the time to buy!

Mon, 05/21/2012 - 08:21 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I haven't turned on CNBC yet....but I'm guessing the answer to that is yes.

 

Mon, 05/21/2012 - 09:46 | Link to Comment azzhatter
azzhatter's picture

It's a laugher, Cramer is walking away from it, saying he never pumped it. Carl Queertinella says they "warned" everyone. Laughable.

Mon, 05/21/2012 - 08:23 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Actually NOW is when we'll see the real manipulation Zippy., Dangerous stock. Remember how Gropeon climbed inspite of everything? Or NetFlux?

This will be the most irrational stock, dangerous.

ori

Mon, 05/21/2012 - 08:20 | Link to Comment battle axe
battle axe's picture

Screw Facebook. Everyone saw them breaking lower, and the sheep get fleeced again. MSM bullshit hype. 

Mon, 05/21/2012 - 08:21 | Link to Comment Dr. Engali
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Well at least for a moment we had 1000 new millionaires. Oh well easy come easy go.

Mon, 05/21/2012 - 08:27 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Like a million voices screaming out in terror......and then.......silence.

http://www.youtube.com/watch?v=djZFHTa6TfA

 

Mon, 05/21/2012 - 09:31 | Link to Comment Morrotzo
Morrotzo's picture

You noticed that too? I talked about the voices of muppets and California pension funds screaming out in terror and being suddenly silenced.

Mon, 05/21/2012 - 08:22 | Link to Comment LoneStarHog
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But...but...what about the grandkids of MillionDollarBonus?...What stories (nightmares?) will they have to endure, now?...Oh! The humanity!

Mon, 05/21/2012 - 08:22 | Link to Comment Politeyx
Politeyx's picture

Do I detect a hockey stick in that graph? Looks like the "Bookers" are about to "face" a little reality.

Mon, 05/21/2012 - 08:23 | Link to Comment Comay Mierda
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Like

Mon, 05/21/2012 - 08:25 | Link to Comment Gief Gold Plox
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Zuckerberg should have gone to Goldman. They've got some self-shorting experience.

Mon, 05/21/2012 - 08:27 | Link to Comment slackrabbit
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Glorious!!!

Mon, 05/21/2012 - 08:28 | Link to Comment Bazinga
Bazinga's picture

A number of people I work with were talking about "having to buy FB" when it became public. When asked if I was going to buy I demurely said "No". Now they see why...

Mwa ha hahahahahhaha!

Mon, 05/21/2012 - 09:10 | Link to Comment junkyardjack
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A lot of the people that I know that said that didn't even have a trading account to buy stocks.  Usually if I asked them anything about how much were they going to buy or why their next question would be what do I need to buy stocks?  The cause of the Facebook fail was that there are not enough idiots left in the market to buy on hype anymore...

Mon, 05/21/2012 - 08:32 | Link to Comment Cosimo de Medici
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Zuckerberg got married Saturday, and in 30 minutes of Monday pre-market activity his net worth is already down $600 million.

Does that mean in a State like California, she owes him $600 million in a Monday afternoon annulment?

Mon, 05/21/2012 - 08:34 | Link to Comment SheepDog-One
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Zuckerberg got married huh, gee who's the lucky guy I wonder?

Mon, 05/21/2012 - 08:34 | Link to Comment GetZeeGold
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No way he got married in Cali......that's full tilt retard there.

 

Mon, 05/21/2012 - 08:45 | Link to Comment bdc63
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He got married in his back yard in Menlo Park ... guests that came thought they were attending an IPO party. 

Mon, 05/21/2012 - 08:31 | Link to Comment EclecticParrot
EclecticParrot's picture

For what it's worth, Grasso suggested underwriters wouldn't likely support pre-market, but might after it opens.  Given the 37 level was just breached, not sure if MS has enought ammo in the holster to "defend" this debacle . . .

Mon, 05/21/2012 - 08:32 | Link to Comment SheepDog-One
SheepDog-One's picture

Mr Charles Biderman....please pick up a white courtesy margin call telephone....thank you.

Mon, 05/21/2012 - 08:38 | Link to Comment booboo
booboo's picture

Way to kick a guy in the Sausalito's, ouch!

Mon, 05/21/2012 - 09:17 | Link to Comment tarsubil
tarsubil's picture

You'll have to excuse me here but did Biderman actually push FB?

Mon, 05/21/2012 - 10:49 | Link to Comment SheepDog-One
Mon, 05/21/2012 - 08:34 | Link to Comment ZombieHuntclub
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Couldnt have happened to a nicer guy

Mon, 05/21/2012 - 08:34 | Link to Comment pamriallc
Mon, 05/21/2012 - 08:37 | Link to Comment GetZeeGold
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Dibs on the IPO.......calling shotgun and all that stuff.

 

Mon, 05/21/2012 - 08:39 | Link to Comment Floodmaster
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Everybody hates facebook,  People talking about themselves with a vanishing audience... Get a life.

Mon, 05/21/2012 - 08:47 | Link to Comment Downtoolong
Downtoolong's picture

The FaceBook $38/share support freebie courtesy of Morgan Stanley is now gone.

Um, I’m just curious Mary Schapiro, how exactly does the SEC define stock price manipulation?

Mon, 05/21/2012 - 08:56 | Link to Comment dbomb12
dbomb12's picture

Only applies to anyone trading in penny stocks

Mon, 05/21/2012 - 09:50 | Link to Comment kahunabear
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In the internut ipo days the underwriters bought in massive amounts of the entire float. So, nothing new, but, yeah, I have always thought it to be pretty sleazy. They call it "making a market".

Mon, 05/21/2012 - 08:53 | Link to Comment puck
puck's picture

Theres no real money in it since most people there are to into themselves to notice any adds.

Mon, 05/21/2012 - 09:03 | Link to Comment Salt
Salt's picture

Think FB users are discussing the IPO? Or perhaps are people Tweeting about it?

Mon, 05/21/2012 - 09:19 | Link to Comment bdc63
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36.59 pre-open ... this day is shaping up to almost as much fun as Friday ...

Mon, 05/21/2012 - 09:34 | Link to Comment bdc63
bdc63's picture

9:32am and 24 millions shares of FB traded ... sitting at $35 right now

Happy Birrthday to ME!!!!!!!!

Mon, 05/21/2012 - 09:41 | Link to Comment tarsubil
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This is fun to watch. Come on, break 35.

Man, when the damn broke it broke hard. LOL

Mon, 05/21/2012 - 10:47 | Link to Comment bdc63
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"somebody" seems to be supporting it at $33 ... for the time being ...

Mon, 05/21/2012 - 17:52 | Link to Comment StychoKiller
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Facebook, Inc. (Facebook) is engaged in building products to create utility for users, developers, and advertisers.  People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about.  Developers can use the Facebook Platform to build applications and Websites that integrate with Facebook to reach its global network of users and to build personalized and social products.  Advertisers can engage with more than 900 million monthly active users (MAUs) on Facebook or subsets of its users based on information they have chosen to share with the Company, such as their age, location, gender, or interests.  It offers advertisers a combination of reach, relevance, social context and engagement.

 

What is all that worth to youze?

Mon, 05/21/2012 - 09:22 | Link to Comment ParaZite
Mon, 05/21/2012 - 09:30 | Link to Comment GrinandBearit
GrinandBearit's picture

LOL! It's raining outside, but today is a lovely day. 

Fuck you Hoodieberg...

Fuck you CNBC...

Fuck you Morgan Stanley.

The icing on the cake would be the market taking a nose dive again today.... please.

Mon, 05/21/2012 - 09:35 | Link to Comment Morrotzo
Morrotzo's picture

PERFECT TIME FOR DOLLAR COST ADVERAGING! I HAVE A TARGET OF 90 BUCKS (MOOOOOOOOOOOOOOOOOOOOOOOO!) A SHARE!

BUY! BUY! BUY!

 

 

Mon, 05/21/2012 - 10:25 | Link to Comment SokPOTUS
SokPOTUS's picture

Easy there, Jimmy....

Mon, 05/21/2012 - 09:38 | Link to Comment icanhasbailout
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Massive plunge at the open... they may have to halt trading in the stock OMG

Mon, 05/21/2012 - 09:42 | Link to Comment tarsubil
tarsubil's picture

Tried to hold $35 but bam! Down over 10%. Take that Zuck!

Mon, 05/21/2012 - 09:46 | Link to Comment icanhasbailout
icanhasbailout's picture

my instincts are telling me FB would have already gone "no bid" if not for artificial supports

Mon, 05/21/2012 - 09:49 | Link to Comment azzhatter
azzhatter's picture

Do you really want to re-connect with people that hated you 20 years ago?

Mon, 05/21/2012 - 09:49 | Link to Comment MeanReversion
MeanReversion's picture

So how much is Morgan Stanley losing holding on to Facebook inventory?

Mon, 05/21/2012 - 09:55 | Link to Comment kahunabear
kahunabear's picture

Me thinks they are losing their butts. Might well hold it htough, huh, it's just a paper loss, ha.

Mon, 05/21/2012 - 10:07 | Link to Comment ZeroIQ
ZeroIQ's picture

Why isn't there any shorting possible in FACEFARCE? I want to make money!

Mon, 05/21/2012 - 10:10 | Link to Comment ParaZite
ParaZite's picture

33 bucks a share and falling, down 12% according to Money.cnn.com

Someone is taking a bath.

Mon, 05/21/2012 - 10:14 | Link to Comment ParaZite
ParaZite's picture

Facebook went public late Thursday, pricing its shares at $38 apiece. That price was set by a consortium of 33 dumbfucks... led by Morgan Stanley, along with JPMorgan Chase and Goldman Sachs.

I couldn't think of a better bunch of assholes to bite the farm and lose a fuck ton of money on Facebook that these asshats. :) 

Mon, 05/21/2012 - 10:26 | Link to Comment SokPOTUS
SokPOTUS's picture

She better divorce him soon, while there are still assets to get to.  Don't want to become just another unsecured creditor...

Mon, 05/21/2012 - 13:10 | Link to Comment Disenchanted
Disenchanted's picture

 

 

FB well off it's lows, now it's down less than 11%

 

FB Facebook, Inc. 34.04 12:52PM EDT 4.19 (10.96%) 116,031,292

 

woohoo!!

 

buy buy buy!!  /sarc

Mon, 05/21/2012 - 14:23 | Link to Comment laomei
laomei's picture

As much as I hate to see another FB post... I REALLY want to see the ticker on that 35 hang which prevented the circuit breaker.

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