Morgan Stanley has been an underwriter of many large technology IPOs this year. The companies include LinkedIn, Yandex - a Russian search engine and Renren - a Chinese Facebook. They popped over 100%, 55% and 30% on the first day of trading respectively. The target percentage gain is usually 15%. The high returns are reminiscent of the internet bubble of the late 1990s. Internet companies are hard to value. There are almost no peer companies to use for comparison purposes. The private markets, where Facebook is traded, does not serve as a useful benchmark for the public markets. Transactions are infrequent and for the privileged few.
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