- Shares fell 83 cents to close at $21.11
- The company fell 3.79 percent after trading 99 million shares.
- CEO Mark Zuckerberg says he won’t sell his shares until next September
Facebook’s market value came under attack by its own employees on Wednesday, when they dumped millions of shares they held in the company.
The social media giant ended the day down 3.79 percent after 99 million shares changed hands.
The company’s shares fell 83 cents to close at $21.11 on Wednesday. Shares are down 44 percent from their initial public offering price of $38.
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Facebook CEO Mark Zuckerberg says he won’t sell shares this year
Wednesday was the first time that employees, who own 234 million shares, were able to sell their Facebook shares.
A lockup period, which required them to hold on to their shares after the company’s initial public offering, expired on Monday.
However, the markets were closed on Monday and Tuesday as a result of Superstorm Sandy, so employees had to wait until Wednesday.
On average, 50 million Facebook shares are traded every day. Trading volume soared to more than 9 million on Wednesday.
The company’s initial public offering in May was valued at $38 per share. The price was $21.11 at the end of trading on Monday.
Nasdaq chart shows Facebook stock ended the day at just over $21
CEO Mark Zuckerberg isn’t selling. He has already said that he will not sell shares until at least next September.
In total, an additional 234 million shares and stock options held by employees as of October 15 became eligible to flood the market.
Lockups are common after initial public stock offerings and are designed to prevent a stock from experiencing the type of volatility that could occur if too many shareholders decide to sell at once.
Facebook posted its biggest one-day gain last Wednesday after posting strong third-quarter results.
The day before, Facebook detailed for the first time how much money it makes from mobile advertising. Mobile devices had been a concern since before the company’s initial public offering in Menlo Park, California.
Facebook shares have not performed well since going public in May amid concerns about its ability to continue growing revenue. But the next lockup expiration will occur on November 14, when 777 million shares and stock options will be eligible for sale.