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On Thursday (August 16, 2012) we will get to see how Wall Street reacts to a deluge of Facebook shares hitting the market following the end of a so-called “lockup period”.
Since the largest social media network went public back in May, the share price has fallen from a peak of $45 to Wednesday’s closing price of $20.74.
Reuters Doris Frankel suggests the stock's slump may actually work in Facebook’s favor this week as insider’s may be less inclined to dump the 271 million shares that are unlocked on Thursday, hopeful of a fast recovery.
"If Facebook was trading at $30, we would see a much larger effect from the lockup expiry. But at $20? Not so much," said Steve Place, a founder of options analytics firm investingwithoptions.com in Mobile, Alabama.
Facebook announced last week that it had introduced “real money gambling” in the United Kingdom via a Bingo platform. The news did little to boost the stock price, however.
- Aaron Goldstein, Gambling911.com
