Facebook face plant has boomerang effect on other IPOs
Facebook's flopping share price is having a negative impact on other initial public offerings.
Yesterday, the company closed at $31.91, down 16 percent below its original price.
Marketwatch has reported that two companies with nothing in common postponed their IPOs after the Facebook face plant.
Corsair Components Inc., which makes gaming products, and Tria Beauty Inc., which advertises laser-hair removal on infomercials, both decided not to go public on their previous time horizon.
They cited "market conditions". Marketwatch also mentioned that another company, Palo Alto Networks, has refused to say if it will proceed with an IPO.
Morgan Stanley shepherded Facebook through to its listing, but only told some clients about a negative report on the company before the shares became available to the investing public.
Lawsuits have ensued, which shouldn't come as a surprise to anyone, given the amount of money that has been lost in just a week of trading.