Feeds

Facebook stock plunge halts - despite insiders being freed to sell

Nobody cashing out just yet at free-content ads giant

Build a business case: developing custom apps

Facebook stock jumped 12.59 per cent yesterday despite early investors getting the go-ahead to offload millions of shares if they so wished.

A lock-out period that prevented staff and others from trading their shares ended on the biggest block of Facebook shares yesterday. The time limit was put in place to give the social network a head start after its stock market debut earlier this year.

The trading restrictions were lifted on about 800 million shares, nearly doubling the 921-million share float that's been on the market up until now.

Facebook stock has performed disappointingly since its initial public offering in May. After feverish anticipation, technical problems on the day and the realisation that underwriter Morgan Stanley wasn't so sure about the firm's future, the share price fell by at least 30 per cent in the first few weeks from its start price of $38.

The first lock-out period finished in August, putting 270 million shares on the market, and pushed Facebook's share price to an all-time low, close to half the IPO price. One of the network's earliest investors Peter Thiel dumped most of his majority stake the same month, offloading $400m worth of shares.

Anyone expecting the same result yesterday was disappointed: shares rose instead of falling, though the lift still only took the price to $22.36. That somewhat steady price suggests calmer investors are hanging on to the stock to see if Facebook can translate its success on the web into mobile ad revenue, which is what it needs to survive as more and more of its users access the site on their phones and tablets. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.