Wall St. Watch: Fingers Pointed Around Facebook CRASH, FTC Google Investigation
Fingers are being pointed on who’s responsible for Monday’s 11 percent drop in Facebook’s (NASDAQ:FB) shares during the first complete day of trading. Names include Morgan Stanley (NYSE:MS) as the lead underwriter; Nasdaq (NASDAQ:NDAQ), for Friday’s technical problems that tempered Facebook’s debut; and Facebook. Top criticisms are the offering price and and the number of shares sold were both too high.
The Federal Trade Commission is conducting its Google (NASDAQ:GOOG) competitive practices investigation at a quick pace, reported Bloomberg, requesting information from a dozen rivals regarding the company’s behavior. The requests had been sent last week and eBay (NASDAQ:EBAY) and Yelp (NYSE:YELP) were some of the recipients. This comes after the EU said on Monday that Google has a “matter of weeks” to clarify the probe and dodge potential fines.
Standard & Poor’s has picked Alexion Pharmaceuticals Inc. (NASDAQ:ALXN) to join the S&P 500 index (SPX) in place of Motorola Mobility Holdings Inc. (NYSE:MMI), effective after the market’s close on Thursday. Meanwhile, Google Inc. has regulatory clearance to finish its $12.5 billion deal for the Motorola handset business.
Dell (NASDAQ:DELL) will release its first quarter numbers after the bell today, with analysts estimating that earnings per share dropped to $0.46 from last year’s $0.55 with a revenue decline to $14.9 billion from $15 billion. The report comes with questions regarding Dell’s capability to move its focus toward higher-end business markets while cutting its low-margin consumer PC category.
Blackstone (NYSE:BX) will acquire French hotel group Accor’s challenged U.S. budget hotel business for $1.9 billion. Accor is attempting to focus its growth outside the U.S., while Blackstone wants to invest “significant capital” in Motel 6 properties to “accelerate the expansion of the franchise base.”
Now check out The Decline and Fall of Facebook’s Empire >>