And now for some more bombshell news about the FacebookIPO… Earlier, we reported that the analysts at Facebook’s IPO underwriters had cut their estimates for the company in the middle of the IPO roadshow, a highly unusual and negative event.
What we didn’t know was why. Now we know. The analysts cut their estimates because a Facebook executive who knew the business was weak told them to. Put differently, the company basically pre-announced that its second quarter would fall short of analysts’ estimates. But it only told the underwriter analysts about this.
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