Investing in Facebook after Sheryl Sandberg Sells Shares

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Investing in Facebook after Sheryl Sandberg Sells Shares

For the past year one of the most highly anticipated and traded stocks has been Facebook Inc.  The social media company first started trading on the New York Stock Exchange at an initial price of $35.  Most experts thought that this was a little bit aggressive and the stock declined to under $25 within just a couple of months of going public.  While some investors have lost some money, the stock price has rebounded considerably and those that have stuck with the investment have seen that there per share price has now increased to over $38 per share.

Since then many investors have decided to sell their stock to reap some of their recent profits.  The most newsworthy sale has come from Sheryl Sandberg (COO) one of the key executives for Facebook.  She has sold over $91 million worth of Facebook stock over the past week.  The decision to do so has left some investors worried that maybe now is a good time for them to start selling their stock likewise.  Well this is a natural concern for investors, it does not necessarily mean that now would be a good time to get out of Facebook (FB).

One reason for the decision to stick with FB is because if Sheryl Sandberg thought that the company was going to start to decline for any concrete reasons, her selling of the stock would be considered insider trading, a risk she is unlikely to take. Furthermore, the company has continued to see strong financial performance and expects continue to predict growth in the future, which makes it a solid investment. Hold on at least until near the next earnings release and you should see three months of appreciation.

Tom Weighs in on Sheryl Sandberg Selling $90m of Facebook Stock