Facebook Investors Cashing Out – And Cashing Out Big

Facebook Investors Cashing Out - And Cashing Out Big - Quicken Loans Zing Blog It’s only been three months and some change since Facebook sent the investment world into a tizzy by going public back on May 17.

Investors cheered, the world watched, and Mark Zuckerberg’s eyes quickly went from blue to money green.

Facebook shares opened up with a bang by starting off at a solid $38.00 a share. It wasn’t the most expensive stock to buy, but it wasn’t cheap. Most investors called it fairly priced given the uncertainty surrounding its IPO.

However, shares began to plummet within the first month. On June 1st, Facebook shares closed at $27.72, and the closing price for Facebook stock hasn’t even come close to the initial price from the first day (as a matter of fact, the closest came on June 26th when Facebook closed at $33.10).

Taking a look at Facebook stock this morning, and at the time of publication, Facebook was hanging around the $19.22 mark.

Now, I’m not a mathematician by any means – I’m a writer, duh – but simple mental math tells me that Facebook is now trading for barely half of what it opened up at.

Here’s what intrigues me the most: Facebook is trading well below what it initially opened up for and investors are beginning to rightfully sell off. You would think that investors are going to take a hit, right?

Wrong.

Peter Thiel, Facebook’s first major investor, cashed out Monday to a pretty penny because he made his initial investment back in 2004 when Zuckerberg first wanted to turn his dorm-room idea into a major business. Thiel and his company held more than 44 million shares of Facebook until he sold off 16.8 million of those shares when they went public for the price of $640 million.

Fast forward to a couple days ago, Thiel sold 20 million more shares for the price of $395.8 million, netting his total cash-out to a shade over $1 billion on his initial $500,000 investment.

Not too shabby, Petey.

Dustin Moskovitz, one of Facebook’s co-founders, has also sold off his shares over the past three days for a sizeable profit, albeit not nearly as strong as Thiel’s. Moskovitz has sold 150,000 shares a day for the past three days to net nearly $9 million.

So take note college kids out there – if you hear of a friend that has an idea that will change the world, you might want to think about investing. Who knows? Maybe you’ll become the next Peter Thiel.

Just kidding, of course. I know of a team member who doesn’t take lightly of me spreading out investment advice and rightfully so.

Invest wisely, kiddies.

 

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