Zuckerberg Vows to Hold His Shares (for Now)

Updated

Tough times continue for Facebook. Lock-up periods on shares are approaching expiration, with up to 1.5 billion shares expected to come online before November. This flood of shares coming out of lock-up could drive the share price down even further.

Mark Zuckerberg has said that he will hold his own shares of the company for a year, an announcement likely intended to inspire investor confidence, but it begs the question: Shouldn't it be expected that the CEO of Facebook will maintain his holdings anyway?

Long-term investors should hold off on this IPO until it comes down in price. Fool.com analysts would also like to see more certainty in Facebook's ad-based revenue model before considering the stock a buy.

Given Facebook's dramatic fall since its IPO in May, most investors don't even want to think about the stock. But there's a lot more to this company than meets the eye -- things every investor should know -- and we've outlined them all in our newest premium research report. So read up on whether there's anything left to "like" about Facebook, and we'll tell you if and when we think it deserves a place in your portfolio. Access your report by clicking here.



The article Zuckerberg Vows to Hold His Shares (for Now) originally appeared on Fool.com.

Andrew Tonner has no positions in the stocks mentioned above. You can follow Andrew and all his writing on Twitter: @Andrew Tonner. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement