Just days before the release of locked-in Facebook Inc (NASDAQ:FB) shares held by some of its biggest investors, the company’s Chief Financial Officer David Ebersman is scheduled to meet investors in New York later in the day, Bloomberg reported.
However there was not much information on the agenda of the meeting, it said.
Large investors such as Goldman Sachs and Microsoft had invested in the shares of the company prior to its IPO in May but these shares were under a lock-in according to a pre-arranged plan. This lock-in expires on Aug 16, when the companies can start selling their holdings.
Facebook shares have slipped about 45 percent since its IPO debut and there are apprehensions that Aug 16 could see a wave of selling in Facebook's shares, further driving down prices.
How Should Investors Play FB Safely, Find In Our Free Report
Ebersman’s meetings give the executive a chance to tell investors why they should hang on to the shares or add to holdings even as the so- called lockup expires, creating the prospect of further declines, Bloomberg reported.
"Facebook needs to do a better job outlining how it plans to generate ad sales from the growing slice of users who access the social-networking service on mobile phones," Victor Anthony, an analyst at Topeka Capital Markets, told the news agency.
If the social networking site wants to keep the confidence and faith reposed by its investors it has to go and explain things to them. Small investors have already lost billions of dollars’ worth of their investments.
On Friday, Facebook's shares rose 3.8 percent to $21.8 at close of trading.
What Technical Charts Suggesting About FB. Get Free Trend Analysis
For the quarter to June, the first publicly reported results of the company, Facebook's revenues grew at 32 percent, slowing down from the 45 percent growth seen in the first quarter.