Skip to comments.Facebook stock price could be hit by torrent of new shares
Posted on 07/29/2012 9:21:20 AM PDT by george76
Think the plunge in Facebook's stock after its sluggish earnings report was bad? Wait until a torrent of new shares hits the market in a few weeks.
Facebook will free up nearly 1.7 billion shares four times the number now trading starting next month as provisions that had barred employees from selling their holdings begin to expire.
That could cause the latest migraine for dispirited Facebook investors, who watched in anguish as the stock was bludgeoned after Thursday's second-quarter earnings report.
The stock, which skidded 12% on Friday and is down 38% since Facebook's initial public offering in May, hardly needs an overhang of new supply
(Excerpt) Read more at latimes.com ...
Rats leaving (with booty) a sinking ship. A ship that inexplicably makes money off a multitude of people that feel compelled to broadcast their uninteresting lives for the rest of the world to ignore. Advertisers, and investors, are getting wise very quickly.
Faceplant the fraudulent IPO. CNBC should be named as a conspirator to the fraud while we are at it.
Buying stock in FB is a lot like buying stock in vapor- nothing in it and will soon dissipate.
I’m not a stock broker, but I’m thinking a software based social site that could feasibly go away as quickly as it arrived isn’t ever really worth more than 15 times its earnings, and I think that is a stretch.
Suckers. They’ll never learn.
The stock could really drop like a rock when the employees start selling their stock.
If the employees got stock or stock options without having had to buy them in the first place, they could make lots of money selling, even if the price drops further.
Could it be that Facebook was over-hyped to start with?
Does Facebook make money only from the ads on the site? Users don’t pay a fee to belong, so how does such a company earn revenue?
Well, any company is worth whatever the collective decisions of buyers and sellers decide through their actions. If the market gets flooded with shares from employees selling, and there aren’t buyers for those shares, the price will fall.
The initial offerings were to FB insiders, then the big name brokers, then the general public. It was a ponzi scheme that made a few a lot of money, but everyone downstream was just stupid. IMO- FB isn't worth $5 per share.
Data mining? (Selling your personal information to others.)
Now Facebook "fan"/business/band pages only display to about 20 percent of the subscribers to said facebooek page. You are "encouraged" to buy full posting to your subscriber base by the posting. Some musicians who posted their upcoming tour schedule and news daily can't afford to buy that many postings a week.