If you’ve been following the Facebook world these past few months, you’ll know that not everything is peachy since the company made its IPO in May.
In fact, things have gotten so bad, that Mark Zuckerberg and other top Facebook executives plan on holding onto all their stock for at least a year.
Since going public at $38 a share, Facebook stock has dropped by more than 50% to $17.73 at market close yesterday.
To stop the bleeding, Facebook execs have revealed that the company will be buying back some 101 million shares – valued at $1.9 billion – from company employees, in order to keep those shares off the market and reduce the risk of the price falling further.
Zuckerberg has assured his employees that while it may be “painful” to see stock prices plummet, investments made by Facebook in the recent months will soon bear fruit. Facebook’s acquisition of Face.com and Instagram come to mind, and we’re yet to find out if rumors of the Opera buyout will turn out to be true.
What do you think? Will Facebook’s stock bounce back, or should Zuckerberg buckle down for a long winter?
Source | Via