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MAKE MONEY BLOG$~For Facebook employees whose shares are locked-up, November can’t
come fast enough. That’s when they will finally be able to sell their
Facebook stock, only who knows how much those shares will be worth by
then.
Daniel Salmon, the Wall Street analyst who has probably served his clients best since the Facebook IPO, thinks those shares might be worth some $15, lowering his price estimate for Facebook’s shares on the last trading day of August. The BMO Capital Markets analyst says he is picking up signs that business advertising on Facebook is slowing down. Salmon has what is effectively a sell-rating on the stock, although he doesn’t call it that. Indeed, research firm EMarketer on Thursday cut its 2012 estimate for Facebook sales by $1.1 billion to $5.04 billion.
Investors sold Facebook stock in early trading on Friday, pushing the shares down nearly 4% to an all-time low of $18.30. The stock has lost more than half its value since Facebook’s May IPO, when Morgan Stanley drove the stock to $38.
Early investors in Facebook were released from their stock lock-ups in August and the effect was easy to predict: Facebook stock had another tough month. Dustin Moskovitz has recently been selling 150,000 shares a day. Bank of America/Merrill Lynch analyst Justin Post, who covers Facebook, also cut his Facebook stock price target on Friday morning from an overly optimistic $35 to $23, which is still hopeful. Post has discovered “the risk of future selling pressure” from the lifting of post-IPO lock-ups and believes the insider selling could continue for the rest of the year.
No doubt much of that selling pressure will come from Facebook’s Menlo Park, Calif., headquarters, where employees surely have calendar reminders for their lock-up expiration day. The fall season is unlikely to increase their fortunes.
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Daniel Salmon, the Wall Street analyst who has probably served his clients best since the Facebook IPO, thinks those shares might be worth some $15, lowering his price estimate for Facebook’s shares on the last trading day of August. The BMO Capital Markets analyst says he is picking up signs that business advertising on Facebook is slowing down. Salmon has what is effectively a sell-rating on the stock, although he doesn’t call it that. Indeed, research firm EMarketer on Thursday cut its 2012 estimate for Facebook sales by $1.1 billion to $5.04 billion.
Investors sold Facebook stock in early trading on Friday, pushing the shares down nearly 4% to an all-time low of $18.30. The stock has lost more than half its value since Facebook’s May IPO, when Morgan Stanley drove the stock to $38.
Early investors in Facebook were released from their stock lock-ups in August and the effect was easy to predict: Facebook stock had another tough month. Dustin Moskovitz has recently been selling 150,000 shares a day. Bank of America/Merrill Lynch analyst Justin Post, who covers Facebook, also cut his Facebook stock price target on Friday morning from an overly optimistic $35 to $23, which is still hopeful. Post has discovered “the risk of future selling pressure” from the lifting of post-IPO lock-ups and believes the insider selling could continue for the rest of the year.
No doubt much of that selling pressure will come from Facebook’s Menlo Park, Calif., headquarters, where employees surely have calendar reminders for their lock-up expiration day. The fall season is unlikely to increase their fortunes.
please give me comments thanks
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