• Inside Labour

    Terry Bell explores the connection between poultry, poverty and desperation.

  • A new ANC sweeper?

    Have the Guptas' new auditors mastered how to look the other way on cue, asks Solly Moeng.

  • Strategy for the big boys

    Formulating strategy across the span of huge companies is a marathon, says Ian Mann.

All data is delayed
Loading...
See More

Facebook share price recovers

Sep 05 2012 09:04
AP

New York - Facebook's stock got some reprieve in after-hours trading on Tuesday after the company said its CEO, Mark Zuckerberg, won't sell stock in the company for at least the next 12 months.

Investors have been concerned with the expiration of lockup periods that allow insiders to sell stock in Facebook. If a lot of shares flood the market the stock price may fall. Adding to those worries, Peter Thiel, a board member and Facebook's earliest big investor, has shed most of his holdings in the Menlo Park, California-based company.

In the Tuesday regulatory filing, Facebook allayed some of those fears. In addition to its disclosure about Zuckerberg's plans, it said that two of its board members, Marc Andreessen and Donald Graham, plan to sell shares to cover taxes, but have no "present intention" to sell any additional stock.

Earlier in the day the social media company's stock fell to its lowest point since its initial public offering after an analyst for the bank that orchestrated its IPO cut his target price on the stock to $32 from $38 saying that its mobile advertising revenue is just starting to grow. The latter was Facebook's IPO price - the one it hasn't hit since its first day of trading on May 18.

Morgan Stanley analyst Scott Devitt still has an "Overweight" rating on Facebook stock. Doug Anmuth, an analyst at JPMorgan, which was another large underwriter of the offering, also cut his target price on Tuesday, to $30 from $45. He kept an "Overweight" rating as well.

Facebook's stock fell to $17.55 in Tuesday trading, its lowest point ever, and closed down 33 cents at $17.73. That's less than half of the stock's initial public offering price of $38. It climbed 31 cents, or 1.8%, to $18.04 in after-hours trading following the disclosure that Zuckerberg will hold off on selling.

Facebook also said that it plans to report its third-quarter earnings on October 23.


* Follow Fin24 on Facebook, Twitter and Google+.

 
facebook

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote

Loading...