The Facebook IPO: What Went Wrong? - Knowledge@Wharton

It has been a wild ride for Facebook lately -- and it doesn't seem to be over yet. The social networking giant made its long-anticipated market debut on May 18, only to see its stock barely rise above the opening price of $38. By May 22, the stock had fallen by 18%, and although it has bounced back slightly since then, some investors have filed lawsuits over how the company and Wall Street banks handled the IPO. What factors contributed to such a volatile debut? According to Wharton faculty, the problem is that no one knows for sure how to value Facebook's 901 million users.

23 May 2012 ... According to media reports, stock market analysts at Morgan Stanley — the investment bank that guided Facebook through the IPO process ...

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