An executive at Facebook had reportedly told analysts that Facebook’s business was weaker than what everyone thought. This information was provided to large investors, but not smaller ones. The Wall Street Journal has reported that that Capital Research & Management wanted to buy into the Facebook IPO, but an underwriting bank on the deal warned them about Facebook’s revenue prospects being lower. Capital Research then slashed the number of shares that they planned on buying and a manager from the company told a banker at Morgan Stanley that the deal’s pricing was “ridiculous.” Fidelity Investments was another big client that was told by analysts of Facebook’s declining financial situation. Fidelity expressed their frustration to Morgan Stanley about Facebook valuations.