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Earlier quoted context omitted.
I assume it was financially healthy for a very small group of people within Facebook. Most of the employees would be on lockdown before they can sell their stocks on the public market, no?
Facebook, the company, got a lot of money out of the IPO, not Facebook's individual employee holdings.
Can anyone explain why they are down 7%?
The WSJ reported the options market has just opened for FB stocks. A lot of people seem to be very bearish about FB so a lot of short action could significantly impact the demand of FB stock.
I'm an amateur at this though, and would love someone to correct me if I'm completely off here :)
Earlier quoted context omitted.
The early investors made out like kings, but I doubt Facebook's employees are in a cheery mood as they watch their options sink underwater and their vested paper wealth dissipate while waiting for the lockup period to end.
Isn't that the fault of the private investors for overvaluing Facebook? Presumably all granted options had a strike based based on the current private valuation, which clearly the public market doesn't agree with (without judgement as to whether the public market is right or wrong).
While the IPO was bad for investors, it was certainly good (financially) for Facebook. They definitely maximized their earnings from the IPO and Zuckerberg really made out well getting just under $38/share for his $1.1bn in shares. In contrast to the Google IPO in which the stock skyrocketed on the first day and really took off after that. Google may have been able to extract quite a bit from their IPO than they did.
The early investors made out like kings, but I doubt Facebook's employees are in a cheery mood as they watch their options sink underwater and their vested paper wealth dissipate while waiting for the lockup period to end.
Earlier quoted context omitted.
The early investors made out like kings, but I doubt Facebook's employees are in a cheery mood as they watch their options sink underwater and their vested paper wealth dissipate while waiting for the lockup period to end.
Isn't that the fault of the private investors for overvaluing Facebook? Presumably all granted options had a strike based based on the current private valuation, which clearly the public market doesn't agree with (without judgement as to whether the public market is right or wrong).
The employees, they dumped a lot of their shares probably. They are allowed since Monday to sell them.
Even if they all sold all of them, is it really enough to have a meaningful impact on the price of the stock with that much trading volume and that large of a market cap? Probably not!
FB IPO is bad for the startup world
FB IPO is bad for the startup world
Agreed. I wonder how much of the current froth is based on people trying to be the next Facebook or Instagram? If Facebook takes off and justifies their early valuation, the startup/angel/incubator/VC world would go into the stratopshere. If it continues to languish, people are going to be much more skeptical in making investments and even starting web based businesses. A lot hinges on this stock price for the rest o…