Featured
Citigroup's Automated Trading Desk (ATD) had trading losses of around $20 million stemming from Facebook's botched IPO offering on Nasdaq OMX Group's U.S. exchange, a source with knowledge of the situation said. » Read More
- Tuesday, 22 May 2012 9:59 AM ETBy:
Reuters
Google completed its $12.5 billion purchase of Motorola Mobility, and the Web search leader named a new management team for the cellphone maker. » Read More
Getty Images - Tuesday, 22 May 2012 9:51 AM ETBy:
Reuters The selloff in Facebook shares deepened on Tuesday, as investors continued to question the stock's valuation after Reuters reported that underwriters cut their revenue forecasts for the company before the IPO.
Emmanuel Dunand | AFP | Getty ImagesFacebookFacebook's shares [FB Loading... ()
] dropped 8.9 percent on Tuesday to close at $31.00 a share. - Tuesday, 22 May 2012 8:40 AM ETBy:
Reuters In the run-up to Facebook's [FB Loading... ()
] $16 billion IPO, Morgan Stanley , the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.
The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast.
Getty ImagesThey say it may have contributed to the weak performance of Facebook shares, which sank on Monday — their second day of trading — to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion.
- Monday, 21 May 2012 9:50 PM ETBy:
Reuters Federal prosecutors on Monday announced insider trading charges against a former Yahoo employee and a fund manager for illegally sharing and trading on secret company information.
Getty ImagesThe exterior of Yahoo! corporate headquarters in Santa Clara, California.The pair pleaded guilty in Manhattan federal court on Monday, the Manhattan U.S. Attorney's office said in a press release.
They were also charged by U.S. securities regulators in a parallel civil proceeding. The SEC said it is pursuing a civil settlement with the two.
Prosecutors said Robert Kwok, 36, a former senior director of business management at Yahoo [YHOO Loading... ()
], had illegally tipped Reema Shah, 40, about an impending July 2009 partnership between Yahoo and Microsoft [MSFT.O
Loading...
()
].Based on the tip, Shah, who worked at a subsidiary of Ameriprise Financial [AMP.N Loading... ()
], bought 700,000 Yahoo shares and cleared $389,000 in illegal profits, prosecutors and the U.S. Securities and Exchange Commission said.
» Read More - Monday, 21 May 2012 6:17 PM ET
In the latest chapter of Facebook's trading saga, market participants were informed on Monday that regulators at the Financial Industry Regulatory Authority (FINRA) will be stepping in to oversee a process that will attempt to reconcile Friday’s botched trades.
According to an alert sent Monday to traders, the review will center on a period of trading on Friday between 11:11 a.m. and 11:30 a.m., during which time investors did not receive order confirmations for trades accounting for some 30 million shares. The review could span as late as 2 p.m. on Friday, since confirmations came from Nasdaq in a steady trickle throughout the afternoon, according to a person familiar with the matter.
Justin Sullivan | Getty ImagesIn some cases, that paperwork, seen as vital to trading books, was not received until late Sunday or early Monday, according to investors and a person familiar with the matter.
Despite a system freeze and some glitches surrounding the open, Nasdaq [NDAQ Loading... ()
] spokesman Joe Christinat maintains that “100 percent of our confirmations were completed by 1:50 p.m. on Friday,” which raises questions as to why some of those receipts were significantly delayed — potentially signaling further hold-up at the broker-dealer or bank level. - Monday, 21 May 2012 3:14 PM ETBy: Jane Wells
Still waiting for your buy and sell orders on Facebook [FB Loading... ()
CNBCMark Zuckerberg ringing the Nasqaq bell.] to clear? That's ok, it's only money. A lot of money. Your money. In honor of the most astounding trading event of the year, Josh Brown renamed the Facebook IPO "Face-plant", which I thought was pretty funny.
Let's not stop there. » Read More
- Monday, 21 May 2012 1:32 PM ETBy: Jeff Cox
Call it the Friday Facebook Fiasco — or a more colorful alliterative of your choice. Regardless, the chaotic opening of the much-hyped social network's stock scared away investors on Monday—and may keep them away.
Bloomberg via Getty ImagesTalk also lingered over whether Facebook [FB Loading... ()
] could monetize its 900-million-strong user base, as well as whether CEO Mark Zuckerberg really cared enough to make sure his shareholders are happy.Overall, the twin worries of Facebook's pricing combined with the shaky mechanics of its trading to create a pungent air of uncertainty around the company.
As a result, Facebook opened Monday below its $38 Friday open and moved sharply lower through the day.
"They should have delayed it," says Dave Rovelli, managing director of US equity trading at Canaccord Genuity in New York. " They shouldn't have opened until 1 o'clock (Friday), until they fixed the glitch."
- Monday, 21 May 2012 12:55 PM ETBy:
Brett Molina, USA Today
Microsoft is taking a shot at social networking.
Source: so.clMicrosoft's new social network, so.clThe company rolled out access to its social search site So.cl to the general public. The service was initially available to students at a select number of universities.
According to a FAQ on So.cl's site, it combines "social networking and search, to help people find and share interesting web pages." » Read More
- Monday, 21 May 2012 12:50 PM ETBy:
Mohamed El-Erian Behavioral finance specialists will have a field day with the Facebook IPO as it speaks volumes to an issue that differentiates them from those that espouse the efficient market hypothesis.- namely, that investors can be vulnerable to mistakes dictated by unconscious biases.
Source: CNBCOr, put another way, the manner that our brains have evolved and work may not always result in the best investment decisions.
And the implications could go beyond this.
Facebook [FB Loading... ()
] was one of the most hyped IPOs in history, and understandably so. The company has over 900 million users around the world, is a leader and a major disrupter and, as such, continues to redefine not only social networking but also a growing number of people's interactions with the internet and with their mobile tools. In response, the underwriters set the IPO price at the top end of a range that, already, had been specified above initial market expectations. They also increased the number of shares offered to the public, and they reserved a well-publicized allocation for retail investors.
- Monday, 21 May 2012 11:15 AM ETBy:
Reuters
The European Union's antitrust chief on Monday ratcheted up the pressure on Google [GOOG Loading... ()
CNBC.com], giving it a matter of weeks to settle an investigation into allegations of anti-competitive behavior and avoid formal charges and a possible fine. Even if the world's most popular search engine offers concessions to resolve the issue, it will still be under the EU spotlight following fresh complaints over its Android mobile software, the top operating system for Internet-enabled smartphones. » Read More
- Monday, 21 May 2012 9:55 AM ETBy:
Carly Fiorina
Now that we have finished with the breathless minute-by-minute coverage of the Facebook IPO, perhaps it’s time to step back and think about its implications for politicians and policy-makers.
Getty ImagesDon't hate him because he's rich, says Fiorina. Instead, celebrate his — and his investors' — willingness to innovate and take risks.It is still true that here in America anyone can become a millionaire or even a billionaire. And lots of people want to. I’m not just talking about the inventors or the investors or the employees. I’m also talking about all those everyday Americans who lined up to get a piece of Facebook, or participated in the stock market for the first time, or watched and cheered as the stock opened. All of these people are excited by the opportunity to make money and achieve success. All of them are intrigued and inspired by the story of a boy who had a dream in a dorm room and became a billionaire before he was 30.
- Monday, 21 May 2012 9:29 AM ETBy:
CNBC.com With Wires Facebook shares [FB Loading... ()
] sank on Monday without the full support of the company's underwriters, leaving some investors down 25 percent from where they were Friday afternoon. 
Emmanuel Dunand | AFP | Getty ImagesFacebook's debut was beset by problems, so much so that Nasdaq [NDAQ Loading... ()
] said on Monday it was changing its IPO procedures. That may comfort companies considering a listing but does little for Facebook, whose lead underwriter Morgan Stanley [MS Loading... ()
] had to step in and defend the $38 offering price on the open market.
Latest Headlines
- Hewlett-Packard Faces a ‘Dogfight’ for Talent: Analyst
- Tech Is Trying to Tell You Something: Terranova
- Facebook Analyst Reports All Over the Map
- Sandberg to Harvard Grads: ‘Can You Click On an Ad or Two’
- Facebook IPO Fiasco: 10 Things Underwriters Got Wrong
- Why Facebook Will Gash Google
- Curt Schilling’s Videogame Company Goes Bust
- Facebook: Hating the Stock, Loving the Story?
The Facebook IPO
CNBC Webinar
Technology Editor
Contributors
Popular in Technology
- Facebook IPO? Most Stock Jocks Say ‘No’
- Facebook to List on Nasdaq : Source
- No Yahoo Severance for Scott Thompson: Filing
- Groupon Earnings Top Forecast; Shares Jump
- Facebook Beefs Up PR Team As IPO Approaches
- Fewer Women in Top US Tech Jobs
- Meet Yahoo’s Interim Chief, Ross Levinsohn
- Facebook Co-Founder Saverin Renounces Citizenship
- What If Apple Were Part of the Dow?
- Amazon, Viacom Close to Web Video Deal
Got A Tip?
Data is a real-time snapshot *Data is delayed at least 15 minutesGlobal Business and Financial News, Stock Quotes, and Market Data and Analysis
© 2012 CNBC LLC. All Rights Reserved.
