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.
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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.
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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.
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