Facebook Inc (NASDAQ:FB) Hits Another Low As Investors Continue To Offload
Facebook Inc (NASDAQ:FB) has tripped 1.66% on street estimates basis being formed on the lock-up expirations in October and November.
The Company will be unlocking 1.46 billion shares by mid-November, representing more than half of the hares outstanding. But analysts at JPMorgan believe that though there could be another instance of heavy selling once the October-November scheduled lock-up expires but, the company might use this as an opportunity for share repurchase. The Company is expected to pay its RSU tax bill by means of the credit sources and the cash balance it has in its account thereby rescuing itself from further sell off of its 120 m shares i.e. value of $2.2 B in the market.
As the Company’s quarter end drew near, it announced an update to its iOS mobile app for iPhone and iPad. The mobile app was completely re-written from the ground up to focus on speed. As the mobile users of the social networking site have increased largely, FB has been trying to create some revenue generation avenues from this segment. In June, Facebook began testing Sponsored Results—displaying sponsored links above organic results when users conduct searches on Facebook.com had brought the one month run rate to $180 million and with the addition of partners like Zynga, Match.com, EA, King.com, Disney Interactive, and Kixeye, FB’s CTR is expected to be around 3% on its early Sponsored results.
In July/August, Facebook certified DoubleClick for ad impression tracking, along with Microsoft’s Atlas ad server. It also announced global rollout of the App Center on July 9 to include the U.S., Australia, Canada, India, Ireland, New Zealand, South Africa, and the UK. On August 7, Facebook announced the beta test for mobile ads for apps, a new ad unit that enables app developers to increase exposure and drive more installs.
Shares of Facebook Inc. are trading at $17.71 down 1.90%.