Suit alleges insufficient warning on earnings estimate reductions
The imbroglio over Facebook's initial public offering continued today with the announcement of a class-action lawsuit alleging wrongdoing on the part of Facebook and its underwriters. The lawsuit, filed in Manhattan federal court, claims that Facebook, Morgan Stanley, Goldman Sachs, and JPMorgan Chase, among others, misled investors and caused them to lose more than $2.5 billion in the wake of the IPO. As Bloomberg reports, the plaintiffs have yet to specify the amount sought for damages. The case comes in the wake of the revelation yesterday that the Securities and Exchange Commission will be looking into the Facebook IPO to determine whether some investors received privileged information ahead of the opening.
Morgan Stanley allegedly warns investors on Facebook revenue estimates
The Facebook initial public offering (IPO) may have been hampered by the bank that brought the social network to Wall Street. The LA Times writes, Morgan Stanley was advising favored clients on reduced revenue estimates for Facebook, leading Wall Street insiders to avoid or drop shares. The US Securities and Exchange Commission will be looking into the Facebook IPO, with the Financial Industrial Regulatory Authority also expressing concern, particularly as this resulted in non-institutional investors with more shares than they had intended. With Facebook shares expected to be scarce, some investors over-ordered in the belief that they might miss out if they didn't, leaving them more exposed than they had planned.
Facebook public stock offering may come Wednesday
Facebook's long-rumored initial public offering (IPO) of stock could be filed as soon as Wednesday if a new leak proves real. The share plans seen by the Wall Street Journal would most likely be underwritten by Morgan Stanley with help from Goldman Sachs. At $75 billion to $100 billion of expected value, it would be one of the most valuable IPOs to date.
Morgan Stanley sees late iPhone production ramp
Morgan Stanley analyst Katy Huberty claims in an unusual Sunday research note that Apple would start production late on the next iPhone. Checks after a visit to Taiwan have led her to believe production would only start in mid-to-late August even with a launch still projected for September. Apple would "ramp aggressively" to get up to pace, Huberty said in the copy obtained by AppleInsider.
Execs have yet to make absolute commitment
Sprint is considering an LTE strategy that would aim for nationwide deployment by the end of 2013, according to comments from Steve Elfman, the company's president of network operations and wholesale. Speaking at a telecom conference hosted by Morgan Stanley, the executive also suggests Sprint is capable of offering LTE devices by 2012.
Morgan Stanley: iPad hurting notebooks as a whole
Morgan Stanley analyst Katy Huberty today issued a note claiming evidence that the whole notebook industry is shrinking due to the iPad. She pointed to NPD data from August which showed retail notebook sales having declined year-over-year for the first time. Notebook sales had started falling rapidly in April, when the iPad first shipped, and the decline has already continued in the first week of September.
Morgan Stanley sees iPad already slowing netbooks
The iPad's sales rate is fast enough that it could grow faster in its first year than netbooks, Morgan Stanley analyst Katy Huberty estimated today. Having increased the expected iPad shipments in 2010 from 6 million to 10 million, Huberty estimates Apple could move 13 million to 16 million iPads in the tablet's first full year, or well over the 7.6 million netbooks that sold in that category's first 12 months.
Gartner says netbooks still helping notebook spike
Notebook shipments surged a massive 43 percent in the first three months of 2010, Gartner found today. About 49.4 million portables shipped and were lead by HP, which pushed almost 9.5 million notebooks and held 19.2 percent of the market. Acer and ASUS profited from their experiences in netbooks and were the fastest growers at 48.4 percent year-over-year (to 9.1 million) and 113 percent (to 4.3 million) respectively.
Morgan Stanley sees Apple leading mobile
The iPhone and iPod touch are pushing the entire industry towards the mobile Internet, Morgan Stanley analyst Mary Meeker said at the Web 2.0 summit yesterday. With about 57 million of Apple's devices shipped since June 2007, their growth has not only been much more aggressive than landline Internet access in general but the entire home electronics industry. Three times as many iPhone-based devices exist as did AOL and Netscape users two years into their respective histories; Apple is also already outselling the Nintendo Wii despite its products coming half a year later.