Facebook Inc(NASDAQ:FB)
had its first ever major lock up release in August when the company had freed
early investors to sell some of their stock. Facebook shares have been gloomy
throughout summer. A Facebook director, Peter Thiel and a very early investor
had sold a massive portion of his shares and that is when the social networking
giant hit its record low.
The degrading
performance of Facebook at the stock market in August had confirmed the fears
of the company’s shares being at risk to a tsunami of selling from workers and
investors. Thisd is why Facebook’s chief financial officer, David Ebersman had
taken the decision to increase the size of the Facebook IPO in May.
However, on the eve of
last big stock lock-up expiration of Facebook, the fear has apparently
subsided. Needless to say, it came as a huge relief to Facebook and Mark
Zuckerberg. The Facebook stock has seen great falls. Since September, it has
seen better times. Presently, it is up more than 50%.
Investors are not that
petrified of the lock up release on Friday, since the stock has performed
relatively well in November with 800 million Facebook shares being released
from the lock-up. The stock has, in fact, rallied more than $20. It has not
looked back ever since.
Also, the mere 156
million Facebook shares are being released from lock-up on Friday. It is a
small amount when compared to the massive lock-up expiration in November.
The most prominent
change has been noticed in Zuckerberg’s efforts to play ball with Wall Street.
He has been resisting the temptation of squeezing out new revenues as he feels
that may repel users. Facebook seems to be moving at a fast pace on its
monetization efforts. It has been working on getting more revenue through many
a method, including Instagram.
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