We asked yesterday what Mr Schmuckerberg’s next move was and opined that the emperor had no clothes… Well Mr Z answered loudly with an SEC filing in which he said he would not be selling any stock for at least another year. The stock rebounded from an all-time low of $17.55 on this news to trade up almost a $1 at last look at $18.60.CEO Mark Zuckerberg said he’d be holding onto his shares for at least a year.
Ever since Facebook went public in May, the stock has struggled to gain traction as investors worry about the social network’s mobile strategy and how much pressure will come from the expiration of multiple lock-up periods (when insiders can sell their shares).
After the market closed Tuesday, Facebook announced via an SEC filing that Zuckerberg would not sell any of his nearly 444 million shares for at least another year. He has an option for another 60 million shares, which he also won’t sell for now. The company further said it would keep 101 million of employees’ shares off the market when they’re eligible to be sold on October 29. Even with those shares withheld, there’s still another 234 million shares that will be freed up to be sold to the public on that day. And investors continue to fear how much more pressure those additional shares will put on the already beleaguered stock.
We’ll see how long the low lasts….
Intra-day 2 day chart