Facebook IPO 'Conspiracy' Theories Abound

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What next? The Illuminati and the Rosicrucians caused the Facebook decline?

My heavens, who didn't conspire to deceive the public on Facebook ? First it was Nasdaq messing up the open. Then it was Morgan Stanley for not supporting the price, and upping the shares. Then, it was high frequency traders.

Now it's Morgan Stanley's technology analyst, who cut his revenue estimates on Facebook during the road show. (See: SEC Needs to Investigate Facebook Estimate Cut, Says Henry Blodget)

It appears that several other companies also cut estimates, after the company issued an amended S-1 indicating slower growth.

I'm not saying any of the above is irrelevant, but really people: get a grip.

The problem with Facebook is that "the world ascribed a $100 billion valuation to a company that doesn't generate much in profits and no one knows how to monetize it," as one trader wrote to me.

Not very exciting to talk about, but that is the central problem.

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