graeme_p - 5:32 pm on May 24, 2012 (gmt 0)
@travelin cat, it is not inside info.If it was, the analysts should not have had it anyway and that would be more serious.
What happened is that they changed their minds about Facebook's future prospects (i.e. faced reality) and told favoured clients, while deliberately not telling other clients so as not to spook the market.
The implication is that the analysts were told/pressurised by the investment bankers doing the IPO to publish optimistic forecasts until the IPO was done, but at the same time they had their own big clients to look after, so they looked after important clients and let the plebs buy the junk. Try proving it. The inevitable consequence of a few big banks dominating sell-side research and big deals (IPOs, M & A etc.).