Facebook investors, already grappling with concerns about the company's growth prospects, were yesterday bracing for the biggest increase in the number of shares free for trading since the company went public in May.
Restrictions lifted yesterday on 804 million shares held by former employees and those who sold at the initial public offering, almost doubling the total available for trading, according to a regulatory filing.
The bans on sales was intended to prevent shares from flooding the market immediately after an IPO. Restrictions lifted on smaller numbers of shares in August and October.
Facebook has lost about half its value since going public as the number of shares rose and investors fretted about the company's ability to boost mobile-advertising sales.
"It has been and will be important to investors without a doubt," said Scott Kessler, an analyst at S&P Capital IQ, who has a hold rating on the stock and does not own it.
"This is obviously something that people have been thinking about and concerned about."
Two more rounds of lock-up expirations remain between now and May. Facebook will free up about 156 million shares for stockholders, except chief executive Mark Zuckerberg, who sold in the IPO.
The company will free up another 47.3 million shares on May 18. This lot includes stock held by Russia's DST Global.
Shares held by Mr Zuckerberg are not part of the tally because he has said he won't sell before September next year.
Facebook fell 1.1 per cent to $19.86 at Tuesday's close in New York. The shares have declined 48 per cent since the IPO.
However Brian Wieser, an analyst at Pivotal Research Group, wrote in a research note this week that the new lock-up expiration may present only "limited downside". Many investors will probably not sell as soon as possible, given recent stock price declines, he said.
"While the number of shares is significant, the market should be capable of handling the trading that results from the lock-up expirations," he said.
Facebook, which makes most of its money from advertising, reported that sales rose 32 per cent to US$1.26 billion in the third quarter, matching the growth of the second quarter, but a slowdown from 45 per cent growth in the first quarter and 55 per cent in the fourth quarter of last year.
Company%20Profile
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The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Neymar's bio
Total club appearances 411
Total goals scored 241
Appearances for Barca 186
Goals scored for Barca 105
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
SPECS
Toyota land Cruiser 2020 5.7L VXR
Engine: 5.7-litre V8
Transmission: eight-speed automatic
Power: 362hp
Torque: 530Nm
Price: Dh329,000 (base model 4.0L EXR Dh215,900)
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
COMPANY%20PROFILE%20
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The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
UAE currency: the story behind the money in your pockets
Company%20Profile
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COMPANY%20PROFILE
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