Canaccord Genuity Morning Coffee Facebook (FB): Death by Dislike
Tweet Send to a FriendGet Alerts FB Hot Sheet
Price: $24.31 -2.99%
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
25 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade FB Now!
Canaccord Genuity Morning Coffee Facebook (Nasdaq: FB): Death by dislike.
Facebook’s 6.3% drop on Thursday (4% Friday and another 0.84% this morning), after the end of restrictions on share sales by its biggest investors, was the second-largest post-lock-up decline among companies that have gone public since January 2011. Only social-game maker and partner Zynga (Nasdaq: ZNGA) has tumbled more, losing 7.9%, on the first day that insiders could start selling their stakes. That was the largest one-day post-lock-up descent among the 20 biggest initial public offerings since January 1, 2011. With Thursday’s stock swoon, Facebook’s IPO now ranks as "the worst performer among all large IPOs on record," according to data compiled by Bloomberg. The slump left Facebook at a record low after a 60% increase in the number of shares available for trading. Under restrictions worked out with IPO underwriters, early investors agree not to sell their holdings for a preset period after a market debut to keep from flooding the market with shares. The shares freed up represent 14% of the 1.91 billion that will become available for sale in the coming nine months. The next expiry comes between Oct. 15 and Nov. 13, when restraints are removed on about 243 million shares. Lock-up expires on about 1.2 billion shares on Nov. 14, and for 149.4 million shares a month later. A final round comes May 18, 2013, with 47.3 million shares becoming available.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Facebook’s 6.3% drop on Thursday (4% Friday and another 0.84% this morning), after the end of restrictions on share sales by its biggest investors, was the second-largest post-lock-up decline among companies that have gone public since January 2011. Only social-game maker and partner Zynga (Nasdaq: ZNGA) has tumbled more, losing 7.9%, on the first day that insiders could start selling their stakes. That was the largest one-day post-lock-up descent among the 20 biggest initial public offerings since January 1, 2011. With Thursday’s stock swoon, Facebook’s IPO now ranks as "the worst performer among all large IPOs on record," according to data compiled by Bloomberg. The slump left Facebook at a record low after a 60% increase in the number of shares available for trading. Under restrictions worked out with IPO underwriters, early investors agree not to sell their holdings for a preset period after a market debut to keep from flooding the market with shares. The shares freed up represent 14% of the 1.91 billion that will become available for sale in the coming nine months. The next expiry comes between Oct. 15 and Nov. 13, when restraints are removed on about 243 million shares. Lock-up expires on about 1.2 billion shares on Nov. 14, and for 149.4 million shares a month later. A final round comes May 18, 2013, with 47.3 million shares becoming available.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Bulls and Bears Do Battle in Aeropostale (ARO); Turnaround Intact?
- Wedbush Downgrades salesforce.com (CRM) to Neutral
- UPDATE: Chile regulators stopped build, imposed sanctions on Barrick Gold (ABX)
Create E-mail Alert Related Categories
Analyst Comments, Trader TalkRelated Entities
Canaccord Genuity
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
