Tomahawk, WI 8/12/2013 (Basicsmedia) – Finally, there is some good news to Facebook Inc (NASDAQ:FB) investors who had been apprehensive about the company’s ability to trade above the IPO price of $38 per share. It has been a long time coming for Facebook and a number of its investors had started voicing their concerns about the wisdom of investing in this company in the first place. But it seems that Facebook has to fend off a fresh wave of concerns about itself since it started trading at the new price. This article will highlight one or two major developments which have come hot on the heels of this achievement.

None of these developments has taken the limelight away from the fact that Facebook is the preferred destination of most people using social networking sites. As you can see from the diagram below, Facebook is still number one as the social networking site which most people spend a lot of time in compared to the others.


Diagram shows that FB is the leading Social Networking Site.

Diagram is from

Highlight of Major Developments at FB

I don’t think there is another piece of news which has emerged out of Facebook of late, which has more weight than the one concerning Sheryl Sandberg. Remember that Sheryl is not your ordinary person, and for those who have no knowledge about who this person is, well, she is the second most senior executive at Facebook. It was reported that she saw it fit to get rid of close to 2.37 million shares which she owned. And for her efforts, she was privileged to receive more than $91 million, which means that she got offers for these shares at more than $38 per share.

When this news emerged, there was a flurry of activity as more investors started asking why she took such a step, when Facebook future outlook is pretty solid, at the moment. Facebook has been trading above its IPO price per share for quite some time, around a month or slightly more. Sheryl’s is the first time a senior executive at the company had decided to sell so many of her shares ever since the company went public. She had been doing this for quite some time, but never at the scale reported here, and none of these had brought her similar amounts of money.

Why Is This Sale Significant?

There have been rumors for quite awhile to the effect that Ms Sheryl would quit Facebook and take up a job with the federal government. At the moment, and at the time of writing this article, I cannot vouch for the veracity of the rumors. They remain rumors since she has often denied that this is what she has in store with her future. After all, it’s important to recall that she still owns more than $1 billion in stock with Facebook. It would, therefore, be unwise of me to state here categorically that her reason for selling her shares was because she plans to quit or abandon Facebook.

I wouldn’t read too much into this huge sale by a senior Facebook executive, regardless of the amount of money and shares involved. Unless otherwise, I would say that she was simply trading with her shares, and until the day when she will issue answers to the questions people have with her move, I would leave it at that.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.