Facebook Stock Drops Further As Employees Sell Shares
Facebook has received quite a bit of criticism over their stock prices and since employees were granted the ability to finally sell shares, stock price has further dropped, this time at about 4 percent.
Because of Hurricane Sandy, Wall Street was closed for two days. This meant employees had to wait a little bit longer as the lockout was supposed to end Monday. In total, employees have around 234 million shares.
After Facebook revealed their quarter three earnings on October 23rd, it’s stock price went over $24 the following day. Since then, the price has continued to go down, closing at $21.94 on Friday and is currently hovering around $21.
This current drop in price reveals that employees may not be patient and instead of waiting for the stock to potentially rise, they want to ensure they get some sort of investment out of the whole situation. After all, when the IPO took place in May 2012, stock prices were at $38.
The coming days and weeks will be a test on Facebook’s stock price and if enough employees sell off shares, this could further negatively impact the price.
Even though 234 million shares sounds like a lot, come November 14th, there will be an even larger test when a whopping 777 million employee shares will also be allowed to be sold.
To keep an eye on the current stock price, you can go here.