Here’s Why Facebook is Faceplanting to New Lows as Lions Gate Roars
Shares of Morgan Stanley (NYSE:MS) are down another 1 percent today. On Wednesday, Morgan Stanley Chief Executive James Gorman told employees that the firm participated “100% within the rules” during its lead-underwriting role in the Facebook Inc. (NASDAQ:FB) IPO. Gorman, in his weekly strategy meeting that was later webcast to employees, said “speculation of nefarious activity” around the social networking company’s IPO is not true. Regardless of some reports, he said, he was not “aware of any dissent” between underwriting firms and Facebook’s $38 per share IPO price, reported MarketWatch. Fellow Facebook underwriter and rival, Goldman Sachs (NYSE:GS) are down another .63% percent to $94.01.
Don’t Miss: Is This Positive News For Facebook Shares?
Meanwhile, today a new low for Facebook’s (NASDAQ:FB) stock continues. Shares fell to a new low of $27.06 as the company’s stock continues to struggle after its IPO, following yesterday’s close at $28.19. Wedbush analyst Michael Pachter said to MarketWatch, “Institutions don’t like to buy stocks on the way down, and retail investors don’t have a lot to base an investment decision on. The stock will work when there is widely disseminated research and when the company starts showing its alignment with shareholders.”
For Research in Motion (NASDAQ:RIMM), it was another day in its year-long decline on Wednesday. The stock dropped almost almost 8% after the company hit a 52-week-low of $10.01 and received negative analyst updates. It also warned of a tough competitive environment and announced the hiring of outside advisers to review its business opportunities. Today shares are up .38%.
Lions Gate Entertainment Corp. (NYSE:LGF) reported a fiscal fourth-quarter loss while seeing higher marketing and acquisition expenses cloud rising revenue from its two successful young-adult series, according to MarketWatch. In after-hours trading, shares fell 6.6% to $12 with the surprising loss, but today have rebounding upward 1% to $12.98. Even with its high costs in the quarter, Chief Executive Jon Feltheimer said most of “The Hunger Games” movies and the November release of “The Twilight Saga: Breaking Dawn: Part 2” profits will be included in the upcoming quarters.