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 | 2446893 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 | 2446900 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 | 2446911 THX 1178
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Mon, 05/21/2012 - 08:25 | 2446924 Lost My Shorts
Lost My Shorts's picture

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 | 2446938 GetZeeGold
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Zuck got married Saturday.


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


Mon, 05/21/2012 - 08:51 | 2447006 t_kAyk
t_kAyk's picture

No, but I bet she did.

Mon, 05/21/2012 - 09:22 | 2447099 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 | 2447126 malikai
malikai's picture

This suckerberg is going down.

Mon, 05/21/2012 - 09:48 | 2447203 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 | 2447516 malikai
malikai's picture

I think 8 is a good selling price.

Mon, 05/21/2012 - 09:22 | 2447100 GMadScientist
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Unless the pre-nup leaves her nothing but shares! LOL

Mon, 05/21/2012 - 08:45 | 2446987 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 | 2446921 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 | 2446944 aerojet
aerojet's picture

They should have IPO'ed at $5.

Mon, 05/21/2012 - 08:33 | 2446941 bank guy in Brussels
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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 | 2446990 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 | 2447000 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 | 2447267 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 | 2447022 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 | 2448855 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 | 2446894 GetZeeGold
GetZeeGold's picture



Artificial Underwriter Support Ends


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



Mon, 05/21/2012 - 08:21 | 2446909 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! ;-)



Mon, 05/21/2012 - 08:26 | 2446927 t_kAyk
Mon, 05/21/2012 - 08:50 | 2447008 THX 1178
THX 1178's picture

+1 for anything Tool.

Mon, 05/21/2012 - 09:24 | 2447107 GMadScientist
GMadScientist's picture

$38 is not the rock I.....thought it would be...

Mon, 05/21/2012 - 08:18 | 2446897 Dineroguru
Dineroguru's picture

Good thing MS has a strong balance sheet...lol

Mon, 05/21/2012 - 08:19 | 2446901 evolutionx
evolutionx's picture

FAcebook crashes

realtime price Frankfurt


Mon, 05/21/2012 - 08:20 | 2446902 ZippyBananaPants
ZippyBananaPants's picture

So, now is obviously the time to buy!

Mon, 05/21/2012 - 08:21 | 2446913 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 | 2447188 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 | 2446920 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.


Mon, 05/21/2012 - 08:20 | 2446904 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 | 2446907 Dr. Engali
Dr. Engali's picture

Well at least for a moment we had 1000 new millionaires. Oh well easy come easy go.

Mon, 05/21/2012 - 08:27 | 2446932 GetZeeGold
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Like a million voices screaming out in terror......and then.......silence.



Mon, 05/21/2012 - 09:31 | 2447125 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 | 2446915 LoneStarHog
LoneStarHog's picture

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 | 2446916 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 | 2446919 Comay Mierda
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Mon, 05/21/2012 - 08:25 | 2446925 Gief Gold Plox
Gief Gold Plox's picture

Zuckerberg should have gone to Goldman. They've got some self-shorting experience.

Mon, 05/21/2012 - 08:27 | 2446931 slackrabbit
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Mon, 05/21/2012 - 08:28 | 2446933 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 | 2447066 junkyardjack
junkyardjack's picture

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 | 2446936 Cosimo de Medici
Cosimo de Medici's picture

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 | 2446943 SheepDog-One
SheepDog-One's picture

Zuckerberg got married huh, gee who's the lucky guy I wonder?

Mon, 05/21/2012 - 08:34 | 2446948 GetZeeGold
GetZeeGold's picture



No way he got married in Cali......that's full tilt retard there.


Mon, 05/21/2012 - 08:45 | 2446989 bdc63
bdc63's picture

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 | 2446937 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 | 2446939 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 | 2446970 booboo
booboo's picture

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

Mon, 05/21/2012 - 09:17 | 2447086 tarsubil
tarsubil's picture

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

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