Facebook is far from their IPO price of $38 per share, but after a massive stock lockup expired today, stock price is up almost 10 percent to just under $22 per share. Today marked the expiration of a new lockup which now allows 733 million employee shares to be sold.
It’s currently anyone’s guess what will happen, and potentially millions of shares could be sold, but news of the expiration has caused a positive increase, at least for now. Combining the last expiration, 1,011,000 million shares in total are eligible to be sold.
Mark Zuckerberg, the CEO of Facebook, holds 504 million and last month said that he wouldn’t be selling and doesn’t plan on selling any of his shares until next year.
There’s been much speculation as to what will happen with the current stock price. The biggest concern was that employees who have been through a massive decrease in stock price would sell off shares left and right.
While that hasn’t happened, it might not be a bad strategy to sell at least some shares in case the stock goes through yet another shakeup.
In August, Facebook’s stock price dropped to its lowest ever at $19.69 per share. Since then, it’s been holding steady around $20 and this could be a sign that things are finally leveling out.