Facebook Inc (NASDAQ:FB)
shares were up yesterday and soared 12.60% to $22.36 despite the fact that The
company is presently going through its biggest stock-lockup expiration with 773
tmillion Facebook shares owned by employees now open for trading in the open
market. Notably, 504 million shares owned by Mark Zuckerberg are eligible too.
However, he has announced that he would not be selling his shares.
Has FB Found The Bottom And Ready To Move Up? Find Out Here
The stock was predicted
to take a minor hit after experiencing the largest lockup expiration. However,
the market had estimated the hit with a few days of downturn. At the same time,
shareholders are not placing bets on another price drop through short selling,
an effective way of getting pocket money when shares shoot down.
Short-term profit that
is based on a prospective new share price drop is gradually disappearing since
short-selling transactions died off sometime during October. It is good news
for the long-term stock price of the company because it attracts committed
shareholders. The fact that share price is a little up could be indicative of
the worst being a bygone.
CEO and founder of
Facebook, Mark Zuckerberg has taken another measure to dampen the recent lockup
expiration. He has declared that he has no plans of selling his shares before
next year. He owns 444 million shares and 60 million stock options. More than a
stock strategy, it is an indication of his confidence in his foundation.
Every lockup expiration
bears a different story. Shares had shot up on 24th October by more
than 22%. However, the first employee lockup expiration had resulted in a
smaller 5% hit, which was followed by a slump for Facebook users for a few days.
Having crossed the
recent milestone, the worst days for Facebook stock price is over. The company
should be able to expect more conventional price fluctuations.
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