Feeds

Facebook stock plunge halts - despite insiders being freed to sell

Nobody cashing out just yet at free-content ads giant

Next gen security for virtualised datacentres

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.