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I'm a bit confused about this. I distinctly remember the news about the earnings warning (due to difficulty of monetizing mobile users) coming out before the IPO. So there can be no complaint there.

The article suggests that the problem is that the banks underwriting the IPO cut their own estimates for Facebook's earnings based on this warning, and then didn't share it with the general public.

Surely this is nothing out of the ordinary- lots of banks/brokers/financial institutions produce research/notes on shares which are only distributed to major clients.



exactly. the biggest issue is the suspicion of FB giving more material, informational color on rev. growth to the analyst(s) than to the public.




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