"Everyone is blaming NASDAQ for issues that are not inherently NASDAQ's fault."
The IPO was delayed during the day because of Morgan Stanley (asking customers not to dump at the open). NASDAQ is not buying shares and hence is not required or expected to bring demand to the table.
The IPO "flopped" not because of the exchange but because demand wasn't there.
That demand wasn't there was established in many post-mortem analyses. Do a quick google search.
"Switching to NYSE won't magically change the price (and I'm pretty sure the price would have fell on the opening day if they listed on NYSE)."
For the venue to have changed the price action, the initial demand would have had to been restrained by the technical difficulties. However, given that customers at various retail brokerage houses were able to get shares in the hours leading up to the IPO, I would chalk that up to a dearth in demand.
It's been well-documented that many orders went unfulfilled for hours on the IPO day. That's the whole point of this article. Other than pointing to Google, what's your substantiation for this claim that the massive drop reflected the market's lack of confidence in FB's valuation?
> In the run-up to Facebook's $16 billion IPO, Morgan Stanley, the lead underwriter on the deal, unexpectedly delivered some negative news to major clients: The bank's consumer Internet analyst, Scott Devitt, was reducing his revenue forecasts for the company.
"Everyone is blaming NASDAQ for issues that are not inherently NASDAQ's fault."
The IPO was delayed during the day because of Morgan Stanley (asking customers not to dump at the open). NASDAQ is not buying shares and hence is not required or expected to bring demand to the table.
The IPO "flopped" not because of the exchange but because demand wasn't there.
That demand wasn't there was established in many post-mortem analyses. Do a quick google search.
"Switching to NYSE won't magically change the price (and I'm pretty sure the price would have fell on the opening day if they listed on NYSE)."
For the venue to have changed the price action, the initial demand would have had to been restrained by the technical difficulties. However, given that customers at various retail brokerage houses were able to get shares in the hours leading up to the IPO, I would chalk that up to a dearth in demand.