Uncertain Times For Facebook As Further Shares Go On Sale

"facebook shares"Investors in Facebook are preparing themselves for possible tumbling prices in shares as millions of shares go on sale today.

This will be the largest number of shares to be made available for the market since the company went public back in May this year and will see a total of 804 million shares becoming available for sale.

The shares that are coming on to the market are those are held by former Facebook employees, a smaller amount of shares had been freed up to be sold in both October and August but this is the largest amount to go on to the market as yet.

When shares from employees went on the market in October there was a rush as employees sold off their stock prompting worries from investors in the social media company about what this sale could do to the overall price of shares in the company this time.

Since Facebook first went public the company has lost around half of its value as investors worry about the future of the company and its potential to be able to harness the revenue from adverts that appear on mobile devices.

There is also the worry that Facebook is not as effective as a sales tool as other forms of social media and with the increasing popularity of Pinterest and its success in driving sales to businesses this is another factor leading to the falling prices of shares in the company.

There will be more locked up shares available to go on sale in May next year and it is not certain if those holding the stocks will immediately sell them or if confidence in the company will have improved by them to settle the share prices and give confidence to investors.

While many former employees of Facebook are rushing to unload their stocks in the company the CEO of Facebook, Mark Zuckerberg, has said that he will not be selling off any of his stocks in the company until at least September of next year.

This announcement from Mark Zuckerberg has gone some way to settling the mood surrounding the stocks but the markets are still expected to be flooded with Facebook shares today.

Experts have predicted however that many people will choose to hold on to their shares, or at least some of them, for a longer period and they will be betting on Facebook becoming a stronger company in the future and they also will not want to sell off shares at this currently very low price.

The financial future for Facebook may be looking rocky in the short term but in the long term there is still plenty of optimism about the company.

avatar DSM Publishing is owned and operated by husband and wife team . They are also the founder and editor of the Affordable Internet Marketing Course and several other publications. Learn more about them here and connect with them on Twitter and Facebook also on Google+
   

1 comment… add one

  • avatar

    Zeke Erie November 14, 2012, 12:07 pm

    As the saying goes, speed kills, but greed can kill company!

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