Facebook Inc. (Nasdaq: FB) shareholders haven't found much to like about the stock since its May 18 initial public offering and have unloaded their shares in droves.
Now, as a fresh wave of shares is ready to flood the market amid the expiration of a second lockup period, some company insiders are also shedding their holdings.
But CEO Mark Zuckerberg (in a move either impressive or desperate), hopes to halt a major selloff by pledging to hold all his Facebook stock for at least one year.
Zuckerberg, who has repeatedly appeared indifferent to Facebook's price swings and the ominous opinions from Wall Street analysts, has watched the tumbling FB stock fry his fortune. His stash includes 444 million shares plus options for another 60 million.
Following the announcement Tuesday of Zuckerberg's plan to hold his stock (he could have elected to sell shares on or after Oct. 29), shares of Facebook rallied nearly 2% in afterhours trading. They gained 4.8% Wednesday to close at $18.58.
That's still a far cry from FB's IPO price of $38 and peak of $45. Facebook hopes the executive moves will provide a sort of cushion under the company's share price.
But Wall Street is skeptical that Zuckerberg's short-term plan can resolve Facebook's long-term issue of proving its profitability.
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