Last month started the dramatic fall with the first lockup expiration resulting in over 271 million shared that were sold by employees. The result was as expected in that Facebook’s share price dropped by 5%.This is just a prelude of what is to come as in the next four months over 1,5 billion shares will be made available for sale. One can only imagine how low the share price can further drop. These sell offs follow many of Facebook’s serious investors also looking to sell their shares.
One of these major investors was PayPal co-founder Peter Thiel who according to a report in Techcrunch sold over 20.6 million Class A shares which leaves him only with 5.6 million shares. With such a significant industry player expressing his lack of confidence in such an obvious manner, many are bound to take note and follow.
It is hard to see how Mark Zuckerberg can convince investors that he has a master plan. Even with their entry into real money gambling with their Bingo Friendzy offering, you would need to be a brave or foolish investor to bet on them returning to their once undisputed title of the world’s largest and most successful global online social network.