@fonzi 242919 wrote:
I read this yesterday and can’t say I was surprised. This is going to kill FB’s earnings.
Facebook has lost about 40% of its stock value since it launched. Its trading just over $21 a share, from its $38 IPO price.
Its only going to get worse..
Quote:
About 268 million shares will be released in mid-August, an additional 192 million shares in mid-October and the largest slug — more than 1.2 billion shares — in mid-November.
Though most of those shares will not be sold, the new supply still will dwarf the 421.2 million the company sold in the IPO.”
Quote:
That has left some investors unwilling to buy before the lock-ups expire because they fear that the venture capital and other insiders will dump shares without regard for the effect on other investors.
“I think Facebook is going to be a mess until the lock-ups are done,” said Michael Pachter, an analyst at Wedbush Securities. “Nobody trusts their shareholders, the insiders, the VCs and the way they behaved in the IPO — greedily.”
good read : Facebook stock price could be hit by flood of new shares – latimes.com