Shares of Facebook were recently off 6.35% to $31.84 and tumbled as low as $30.98 -- 18.5% below the company’s $38-a-share IPO price. Even during the Friday trading debut, Facebook's underwriters had to step in to prevent the shares from breaking issue.
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Facebook’s highly-anticipated IPO valued the company at a whopping $104 billion -- roughly the same size as Internet veteran Amazon.com (AMZN: 214.29, -2.99, -1.38%) -- despite serious questions about the its ability to lure advertisers and monetize its mobile offerings.
While the social network undoubtedly has characteristics that point to lofty financial metrics down the line, it is also still developing and posted a sequential decline in revenue last quarter.
The Morgan Stanley revenue revision came on the heels of Facebook filing an amended prospectus with the Securities and Exchange Commission that expressed caution about revenue growth due to a shift to mobile by users, reported.
The May 9 SEC filing also triggered revenue estimate revisions by fellow underwriters Goldman Sachs (GS: 96.61, -1.43, -1.46%) and JPMorgan Chase (JPM: 34.07, -0.19, -0.55%).
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