fintech / news / / The Daily Reckoning
A friend and editor of Paradigm Press’s Million Mission, Davis Wilson, wrote a piece on the Facebook IPO I read with a potent mix of nostalgia and.
Facebook quietly lowered revenue projections to Morgan Stanley before its IPO, but not to retail investors.
KEY POINTS
- Morgan Stanley's institutional clients received advance notice of Facebook's revenue cut, creating information asymmetry.
- Goldman Sachs avoided reputational damage by not leading Facebook's IPO, which was mishandled by Morgan Stanley.
- Facebook's IPO buyers suffered losses, while Zuckerberg only needed one more equity offering after the IPO.
- SpaceX's rumored IPO may be priced at a price-to-sales ratio near 100, raising valuation concerns.
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