Should You Exit Shares Of Facebook Inc. (NASDAQ:FB) After Insiders Sell?

Posted by Beth Hart November 14, 2013 0 Comment 1007 views


Facebook Inc. (NASDAQ:FB) is out rightly exploring the opportunities to counter balance the declining trend in its teenage users alongside maintaining its overall market share among rapidly popularizing mobile apps like WeChat, Vine, Flicker and even the old messaging service provider Skype. GlobalWebIndex recent study listed Facebook Inc. (NASDAQ:FB)’s Facebook Messenger and Instagram Mobile App at 5th and 6th Rank with 89% and 85% increase, respectively, in teenage usage between 1Q13 and 3Q13. The top 4 app posted strong three digit increase with WeChat leading the chart with over 1000% increase.

Snapchat Buyout

Though GlobalWebIndex did not feature Snapchat in the list of top 20 trend of active usage among teens aged 16 to 19 years, it did mention Snapchat as rapidly emerging app with approximately 10% global penetration among teens, leading it ahead of WeChat, Vine and Pinterest.

Snapchat, the photo messaging service has been increasingly catching attention of investors with its growing global popularity and Facebook Inc. (NASDAQ:FB) is the most recent one to offer all in cash buyout deal valuing Snapchat at $3 billion.

While Snapchat spokeswoman declined to comment; Facebook Inc. (NASDAQ:FB)’s spokeswoman said, “We don’t comment on rumors and speculation.”

Insider Selling

While Facebook Inc. (NASDAQ:FB) is considering buyout option, like it did with Instagram – a photo or video sharing app; the company insiders are considering selling exercise to profit from  Facebook Inc. (NASDAQ:FB)’s near lifetime-high stock prices. The most significant is David Ebersman, the company CFO who sold 911,700 shares of Facebook Inc. (NASDAQ:FB)’s stock in a transaction that fetched him $42.6 million.

The most recent is Facebook Inc. (NASDAQ:FB)’s VP Colin Stretch who sold 2,977 shares to cash-in $136,942. The most magnificent was the insider selling transaction worth $91.3 million, when Facebook Inc. (NASDAQ:FB) COO Sheryl Sandberg unloaded 2.4 million shares in a scheduled transaction in August.

Those of Twitter Inc. (NYSE:TWTR) employees tracking these news might be cherishing their holdings following remarkable IPO debut and dreaming of significant cashing-in, but at least for the moment they need to wait for their lock-in period to get over.



About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

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