Is It Doomsday for Facebook Shares?

804M shares held by ex-employees could flood the market
By Kevin Spak,  Newser Staff
Posted Nov 14, 2012 8:54 AM CST
This Wednesday, May 23, 2012, file photo, shows the pre-market price for Facebook at the Nasdaq MarketSite in New York.   (AP Photo/Mark Lennihan, File)

(Newser) – Wall Street's keeping a nervous eye on Facebook shares this morning, which could be in for a really rough day—even by Facebook's standards. Restrictions lift today on 804 million shares held by former employees, meaning the supply of potential shares for sale is about to double, Bloomberg reports. But analysts aren't sure how big an impact that will have. "I think it will have a massive impact, and already has," one tells MarketWatch.

The question is how many people will sell. "It's impossible to know," the analyst said. "But Peter Thiel's sale of more than 80% of his stock is a sign that others may consider doing the same." But Wall Street has gotten a lot more positive on Facebook in the wake of its most recent earnings report, so some analysts are saying shares should be able to retain their current price. (Read more facebook stock stories.)

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