We all know CNBC loved doing thing loud, and their fanfare around the Facebook IPO was the network in its element.To some Morgan Stanley bankers, however, that element is part of what made the company’s IPO such a disaster for small investors, The Daily News reports.
According to an insider, the bankers figure that if the network hadn’t acted like Facebook CEO Mark Zuckerberg ‘s entrance at the kick-off of the company’s investors road show at the Sheraton hotel was “the President’s State of the Union Address,” things would have turned out differently.
They’re also calling out CNBC senior vice president and editor in chief Nik Deogun, saying he has no right to criticise the bank considering his network’s converage. Specific shows played their part too.
…on May 17, the day before the actual IPO, the hosts of CNBC’s “Fast Money” appeared on camera wearing hoodies — a reference to Zuckerberg’s favourite fashion item, which came off like an homage to the baby billionaire.
That same day, controversial “Mad Money” host Jim Cramer told his viewers, who tend to be mum-and-pop investors and market-playing college students, “If you can get in on the actual IPO, then I think Facebook is a no-brainer.”
He added: “We all know this one’s going to pop like crazy on its first day of trading, so if you can get in on the deal, I think you should try to get your hands on as many shares as possible.”
When the stock went down, Cramer said it was because Facebook didn’t do a good roadshow.
Obviously Morgan Stanley bankers beg to differ.