Facebook Inc (NASDAQ:FB)’s stock has been tanking steadily, since the company’s IPO earlier this year. The constant fall in share price has hurt, not only investors, but also the company’s CEO, Mark Zuckerberg. Zuckerberg has tumbled from being in the top 40 richest men in the world, according to Bloomberg, due to the Facebook Inc (NASDAQ:FB) stock crash, as we previously reported here on ValueWalk.
There does appear to be some people left, who still have faith in the social networking giant. Reed Hastings, CEO of Netflix, Inc. (NASDAQ:NFLX), has purchased $1 million worth of Facebook Inc (NASDAQ:FB)’s shares, at a price of $21.03 per share. This is considerably lower than the IPO price of $38 per share, which indicates just how far the stock has fallen in its short time on the market.
Facebook insiders, who purchased shares at the IPO are said to be getting ready to sell and flood the market with the losing investment. Hastings seems to think it is not such a loser after all. However, Hastings doesn’t have the greatest track record for investing either.
He was constantly selling his shares in Netflix, Inc. (NASDAQ:NFLX) as the company’s stocks rose in price, all the way up to nearly $300 per share. But, when the shares tanked to $111, he stopped selling, and now they currently trade near $57 per share.
Is this purchase an indication that Hastings believes Facebook is a worthwhile investment? Or is the truth more closely represented in saying that he believes it to be more worthwhile than his own company, Netflix? Whatever the reason, Hastings is now deeply invested, and will have to wait, just like everyone else, to see if it pays off. An interesting note, is that Hastings did not purchase any more Netflix stock, after the shares began tanking.