While Facebook (FB) stock seems to have stabilized in trading a bit in recent days, the company remains in the headlines for its IPO fallout.
Morgan Stanley (MS), the lead investment bank in the company’s public offering, is apparently planning on compensating investors who overpaid when they bought Facebook stock in Friday’s IPO—likely because the bank hopes to avoid more regulatory scrutiny. But that ship has likely sailed, as U.S. House and Senate committee officials said yesterday that their staffs are gathering information about the social networking company’s offering and that the topic may come up at congressional hearings.
Small investors and institutional investors alike were victim to the domino effect that started with a trading glitch at the Nasdaq (NDAQ), as a whopping 30 million Facebook shares were executed improperly because of technical flaws on the exchange, the largest such problem that Nasdaq has experienced.
I’m happy that most of you—as shown by our poll that I mentioned in our last update on the social network’s IPO—decided to avoid touching Facebook stock.
There are way better buys out there right now, especially in the retail sector taking advantage of strong consumer spending and consumer confidence.
In fact, U.S. consumers are a lot more optimistic than economists expected. The University of Michigan/Reuters reported today that May consumer confidence rose to 79.3, up from 76.4 in April, so it is obvious that folks are cheering up as lower fuel prices put more money in their pockets so they can buy the things they want and get out and enjoy the three-day weekend.
Have a happy and safe Memorial Day,