There is no singular "they". The equity research analyst, noting the S-1/A revenue forecast amendments by FB, downgraded the stock. The bankers, noting that the issue was 25 times oversubscribed in Asia alone, saw demand outstripping supply.
May the bankers have gotten overzealous? Yes, probably. But we're saying this with the benefit of hindsight. Remember that Morgan Stanley walked into this deal still burning from LNKD popping 90% on its IPO - after the underwriting syndicate had already raised the price by 30% on strong demand [1].
May the bankers have gotten overzealous? Yes, probably. But we're saying this with the benefit of hindsight. Remember that Morgan Stanley walked into this deal still burning from LNKD popping 90% on its IPO - after the underwriting syndicate had already raised the price by 30% on strong demand [1].
[1] http://articles.businessinsider.com/2011-05-19/tech/30001969...