Facebook employees will soon be able to sell. This could mean bad news for Facebook’s already dropping value.
As the time draws closer to where Facebook employees can start selling their stock everyone with money invested into this social media giant is getting worried. With the stock now a little more then 50% of what it used to be I can only predict Facebook employees would want to sell what they have to maximize their profits. If I were a Facebook employee I’d sell off at least some of my stock and wait to see what Mark Zuckerberg has in store for a better profit revenue stream. Mark Zuckerberg seems to be keeping very cool in the midst of all this, being this is his first CEO position and it happens to be the CEO of one of the largest companies in the world who seem to be on the fine line of breaking through with technology that will save their stock price and investors portfolio or becoming an over-hyped and over-valuated internet business like AOL was before the dot com crash. He promises that he will not sell any of his stocks regardless of how low they go but just because he believes in his product doesn’t necessarily mean that wall street believes in it or that revenue stream they so badly need is going to magically appear. Although Facebook is the pioneer of this social media age it’s stock does not seem to be effecting start-ups and technology businesses at all. The world will certainly still tick regardless of how the result of Facebook. A lot of other companies, such as Zynga, are too intertwined into the Facebook gaming environment and should look for ways to start creating online social games without relying on Facebook’s API. These companies rely heavily on the success of Facebook and at this point is something they should be looking at changing, and fast. I personally had deactivated my Facebook account 6 months ago and have recently started, slowly, reintegrating myself back into that social world. In six months I can see Facebook is desperate in making money and making investors happy with advertisements popping up like it did before MySpace’s demise. Source: http://www.forbes.com/sites/nathanvardi/2012/09/24/the-next-problem-for-facebooks-stock-its-employees/TAGS: