Facebook Stock Drops Wednesday after Ban Lifted on Employee Stock Sales

By Ed Silverstein November 01, 2012

Facebook employees can sell their stock this week with a ban lifted on insider sales. Up to 234 million shares and stock options could be sold.

It appears some employees may be eager to sell shares this week. On Wednesday, Facebook shares dropped more than any other time in five weeks, news reports said.

Company shares dropped 3.8 percent to $21.11 at the close of trading on Wednesday.


Image via Shutterstock

In August, a ban covering 271 million shares expired on sales by early investors and some directors. Some of these shares were held by Accel Partners, Goldman Sachs and Peter Thiel, a PayPal co-founder, according to The New York Times.

The AP estimated that as many as 1.5 billion shares could be sold.

The sales come after Facebook’s problem-plagued initial public offering in May. The stock has been a disappointment to some investors.

There are more key dates this year when bans will be lifted from selling Facebook shares, The AP said. On Nov. 14, 777 million shares and stock options could be sold. On Dec. 14, 156 million shares held by early investors and some others could be sold. Then on May 18, 2013 some 47 million shares held by Mail.ru Group and DST Global, who were early investors, could be sold.

The more recent sales ban was scheduled to be lifted on Monday, but did not take effect until Wednesday because the stock market was closed with the impact of Hurricane Sandy.

In August, TechZone360 reported that some of the causes of the falling stock price were an earnings report (which showed costs increasing more than projected) and lingering questions about future company growth. A few key executives (Katie Mitic and Ethan Beard) left the company. Also, Facebook reported more than 83 million Facebook accounts were duplicates or fakes.

Meanwhile, the company is trying to come up with a way to take advantage of mobile devices.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Mobile is the Next Great Front in Digital Video Monetization

By: Tara Seals    7/7/2015

As opposed to TV's channel-surfing-friendly programming presentation, online and mobile video has always been seen as more of a foraging experience wh…

Read More

Google Entering Carpool Lane in Israel

By: Andrew Bindelglass    7/7/2015

Google launched its crack at a ride-sharing service in the Israeli city of Tel Aviv Monday, aiming at supplementing traditional taxi services and tran…

Read More

Amazon Looks to Supplant Black Friday with Prime Day Deals

By: Andrew Bindelglass    7/7/2015

Amazon, the online buying and selling behemoth that originated as online bookstore and subsequently became one of the Internet's largest marketplaces,…

Read More

The DiePhone: The Many Ways Your Smartphone Could Kill You or Someone You Love

By: Rob Enderle    7/7/2015

An iPhone case shaped like a gun has been flagged on the East Coast and it comes with a "fun" Russian roulette app. I'm sure there are stupider things…

Read More

Tables are Turned as Hackers are Hacked

By: Andrew Bindelglass    7/6/2015

In an ironic turn of events, one of the world's largest providers of surveillance technology was hacked last night. The Hacking Team is an Italian-bas…

Read More