SUBSCRIBE to Next Media Animation: http://www.youtube.com/subscription_center?add_user=NMAtv<br /><br />As Facebook officials were busy hyping the company's $16 billion IPO, the company quietly told its underwriters Morgan Stanley, Goldman Sachs and JPMorgan to scale back 2Q earnings estimates.<br /><br />Facebook: http://www.facebook.com/NMAtv<br />Webpage: http://www.nma.tv/<br />Twitter @nmatv: https://twitter.com/#!/nmatv<br />Tumblr: http://nmatv.tumblr.com/<br /><br />Facebook was concerned increased mobile usage would cut into earnings and the underwriters, who analysts covering the company, were too optimistic about second-quarter earnings prospects. But who did Morgan Stanley, Goldman Sachs and JPMorgan tell about Facebook's warning?<br /><br />Top clients get information first. Of course, smaller investors and those buying shares in the open market never received this information.<br /><br />This selective disclosure provides investors close to the underwriters an advantage small investors don't enjoy. In the three days since Facebook went public, the shares have lost 18%.
