Facebook Stock Is 'Now Normalizing': Morgan Stanley CEO

Friday, 18 Jan 2013 | 10:57 AM ET
Morgan Stanley's Gorman on Facebook IPO
James Gorman, chairman & CEO of Morgan Stanley, shares his thoughts on the Facebook IPO, adding that Facebook stock is normalizing. "It's a great company," he says.

Facebook stock is "now normalizing" and will continue its march higher, said James Gorman, chairman and CEO of Morgan Stanley, which was the lead underwriter on the social network's initial public offering.

Gorman told "Squawk Box" on Friday that all the problems with Facebook on its first day of trading were "as bizarre as the projections the day before" that the stock would go to $80 a share. "Both were equally ridiculous," he said.

(Read More: Stock Rally Still Has Legs: Morgan Stanley CEO)

Calling Facebook a "great American story," he predicted, "It's now normalizing. It's back in the $30s. The management and the staff of Facebook deserve that. The investors deserve it. And I think it will keep recovering."

(Read More: Facebook Rolls Out Social Search Feature)

James Gorman, CEO, Morgan Stanley
Matthew Belvedere | CNBC
James Gorman, CEO, Morgan Stanley

Gorman, who appeared on CNBC right after Morgan Stanley reported better-than-expected earnings, also responded to criticism of the company's role as lead underwriter of the Facebook IPO. "I couldn't be prouder of our technology team," he said. "They are world class, and I believe they led or co-led the next seven deals in that space."

"They're the real deal," he continued. "And I'd use them every time."

By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC

  Price   Change %Change


Contact Technology


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.