Hurricane Sandy appears to have saved the share price of data harvesting operation Facebook for a few days.
Shedloads of shares were expected to end up in the market as Facebook staff were allowed to sell them off. They hadn’t been allowed to do so and just had to watch as their value fell.
The sudden injection of shares would make a few people at the company very rich, but would result in the overall share price dropping.
Fortunately for Facebook it was given a few days grace when a rough hurricane hit New York, closed Wall Street and a lamb lay down on Broadway.
According to Reuters, staff at Facebook would be tearing their hair and stamping on their rabbit. After all, they have spent six months of watching helplessly as the value of Facebook’s stock crumbled,
The New York Stock Exchange and Nasdaq were both closed on Monday because of Sandy, the exchanges’ first weather-related shutdown in 27 years. Both exchanges said they would remain closed today.
There are 234 million shares of Facebook stock owned by company employees were eligible for trading on Monday.
Facebook had moved up the lock-up expiration date for employees by a few weeks in a bid to bolster morale among the company’s rank-and-file who have been unable to sell shares even as other insiders and early investors have sold.
Facebook is gambling that the recent rise in the shareprice of 12 percent after better-than-expected quarterly results would stop the price falling too much. Its shares closed Friday’s regular session at $21.94 – our tip is that they will be $13 by the end of the next quarter.