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

ITEXPO's IBM Keynoter: AI is Here Today

By: Paula Bernier    2/20/2018

Many folks think the artificial intelligence is something we'll see in the future. That's true. AI will be employed in a broader variety of more sophi…

Read More

The Blockchain Event Draws a Crowd

By: Paula Bernier    2/20/2018

The Blockchain Event in Fort Lauderdale draws a crowd, offers some answers, and raises lots of interesting questions. Why have some cryptocurrencies g…

Read More

Hughes: WAN Optimization Expertise, Homegrown Solution Differentiate SD-WAN

By: Paula Bernier    2/16/2018

The SD-WAN marketplace is a crowded one. But Hughes Network Systems says it brings unique expertise and proven technology to the table. And that, Jeff…

Read More

Juniper Security Expert: Behavior Analytics Helps Address Threat Complexity

By: Paula Bernier    2/16/2018

Organizations are changing their cybersecurity strategies, says Juniper Networks Cybersecurity Strategist Nick Bilogorskiy, who presented the closing …

Read More

Welbitz Wins ITEXPO's Idea SHOWCASE

By: Paula Bernier    2/16/2018

It was a sweep. Both the audience and the judges at ITEXPO's IDEA Showcase Thursday picked Welbitz as the winner. The company went up against fellow s…

Read More