After being bombarded by various scandals, finally the levee of Facebook stock broke really hard yesterday. In single day, Facebook lost about 100 billion US Dollar in stock value. The social media giant's market capitalization plummeted by $119 billion to $510 billion as its stock price plummeted by 19 percent.
Why?
Many speculates this is because Facebook got many scandals these couple of months. From, Cambridge Analytica scandal, to maybe the free speech issue and government restriction like in Vietnam.
But maybe there are more simple reason. Facebook missed its profit again and again.
“Our total revenue-growth rates will continue to decelerate in the second half of 2018, and we expect our revenue-growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4,” he said on the conference call. Wehner also said Facebook still expects expenses to grow 50% to 60% from last year.
Although Facebook already has Instagram, Whatsapp, even Oculus VR and many tech companies, the user growth is slowing down and the expenses keep increasing each year. The funny thing is Mark Zuckerberg maybe already had some kind of premonition, that made him sold some of his Facebook shares in February 2018
Mark Zuckerberg sold $357 million worth of Facebook shares this month, ramping up his regularly timed stock selling to fund his philanthropic efforts.
Hmmmm, interesting, is there will be giant bubble burst around Facebook or any other tech company? We don't know yet because Facebook still has giant number on its head, but maybe if you hold Facebook stocks right now you should be careful. Even the Facebook insiders start to sell their shares faster than James Gunn getting fired by Disney.
Of those 13.6 million shares sold by executives, the vast majority were offloaded by the company's founder and CEO, Mark Zuckerberg. According to the data, he dumped 13 million shares in the second quarter, double what he sold in the first quarter of the year and 10 times what he sold in the fourth quarter of last year. To be clear, insiders sold in compliance with what's known as Securities and Exchange Commission Rule 10b5-1, a pre approved selling mechanism that is completely legal. And there is no evidence to suggest they were acting on inside information about the disastrous quarter that sent Facebook's stock down nearly 20 percent Thursday.
However, their timing happened to be pretty good.
Yeah, it is pretty good timing indeed, maybe we all should move to alternative Social Media like Steemit or Minds.com.
What do you think?