Has FaceBook Landed? Can It Get Back Up Now?

Has the air in FaceBook’s valuation bubble released enough to put the company on a plateau where it can now be evaluated on its merits and performance going forward? Stock price leveling after this year’s bumpy ride could suggest that FB can get back to business and might be able to worry less about stock market expectations while doing it.


Facebook share prices are up today, with shares at 21.91, 10.32 percent above yesterday’s level. It represents a 4.6 billion market capitalization gain. Today the company is experiencing its biggest stock-lockup expiration, with 773 million Facebook shares (NASDAQ:FB) held by employees now eligible to be sold on the open market. Notably, 504 million shares held by Mark Zuckerberg are eligible, but he declared that he wouldn’t sell them. [Update: $FB ended the day up 12.6%]

Facebook’s stock closed at 19.86 yesterday. The stock was expected to take a slight hit following this largest lockup expiration, but the market anticipated the hit with a few days of downturn. At the same time, investors are not betting anymore on yet another price drop through short selling — a way to effectively pocket money when shares go down.

Short-term profit based on a potential new share price drop is slowly disappearing…

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