A recent announcement by Facebook has alleviated some of the company’s after-hours trading pressure; CEO Mark Zuckerburg will be withholding all stock sales in the company for at least a year.
Boston.com explains that “investors have been concerned with the expiration of lockup periods that allow insiders to sell stock in Facebook. If a lot of shares flood the market the stock price may fall. Adding to those worries, Peter Thiel, a board member and Facebook’s earliest big investor, has shed most of his holdings in the Menlo Park, California-based company.”
Facebook’s filing on Tuesday, as well as the announcement that board members Marc Andreesen and Donald Graham intend to sell only enough shares to cover taxes, has dampened many concerns.
Boston.com adds, “earlier in the day the social media company’s stock fell to its lowest point since its initial public offering after an analyst for the bank that orchestrated its IPO cut his target price on the stock to $32 from $38 saying that its mobile advertising is just starting to grow. The latter was Facebook’s IPO price- the one it hasn’t hit since its first day of trading on May 18.”