The storm appears to be good only for Facebook, as it saved the share price of data harvesting operation for a while. A lot of shares were predicted to end up in the market when Facebook employees were finally allowed to sell them off. Before, they couldn’t sell them and just had to watch as their value fell.
Although the sudden injection of shares would definitely make some people at Facebook very rich, it would also lead to the overall share price fall. Fortunately for the company, Facebook received a few days grace because of a rough hurricane hitting New York, closing Wall Street and a lamb laying down on Broadway.
In the meantime, both the New York Stock Exchange and Nasdaq were closed this Monday because of the hurricane – it turned out to be the exchanges’ first shutdown because of the weather in the last 27 years. Up to date, there are 234,000,000 shares of the social network’s stock owned by company staff, which were eligible for trading on Monday.
The largest social network throughout the globe had moved up the lock-up expiration date for employees by a few weeks in an attempt to bolster morale among Facebook staff who couldn’t sell shares even after other insiders and early investors have done that.
The company is gambling that the recent increase in the share price of 12% after good quarterly results would stop the share price from dropping that much. Facebook shares closed last Friday’s regular session at $21.94, but the experts continue to predict that they will be no more than $13 by the end of 2012.