Facebook Rally Not Surprising

The lead headline in the money section of the USA Today says it all: "Facebook could be in for it today" -- courtesy of the gigantic lock-up expiration that occurred at the opening of trading. Why was the paper so sure that Facebook's (FB) stock would get hammered as 777 million new shares hit the market?

Well, how about because the bulk of the rank-and-file employees were allowed to sell after today's lock-up expiration and many of them have their life savings tied up in the stock. Or perhaps because there's a terrible record of past Facebook lock-ups, one that led to a 6.3% fall and a second one that led to a decline of 3.8%. Plus there was the sheer size of the deal, 777 million shares, a level of supply that the paper pointed out would be hard to digest, especially given the public's sour sentiment toward the stock....472 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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