Friday, December 14, 2012

Facebook Investors Not Concerned With Lock-Up Expiration

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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