Facebook Inc (FB) Investor Dumps $38M In Stock


Jim Breyer is selling away his $38 million worth of Facebook Inc (NASDAQ:FB) shares according to the Securities and Exchange Commission filing, which has been published on Monday. Jim Breyer is one of the early investors in Facebook Inc (NASDAQ:FB) and soon will be stepping down from the company’s board in June.

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Facebook Inc (FB) Investor Dumps $38M In Stock

By profession, Breyer is a venture capitalist who invested in Facebook Inc (NASDAQ:FB) through his firm Accel Partners. He has sold 1.3 million of his own shares according to the filing from Wednesday. The shares are valued between $28.19 and $29.03. Breyer still holds 7.8 million shares of Facebook Inc (NASDAQ:FB) and the shares he dumped are only a small part of these holdings. At the time of filing, the 7.8 million shares were worth $223 million. In October also, Breyer sold some stock of Facebook. He sold more than $81.1 million in share.

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In Line Earnings Helped a bit

The social media giant posted its first quarter 2013 earnings recently, which were pretty much in line with the expectations. The earnings per share came in at $0.12 per share in the first quarter of 2013. The revenue for the company came in at $1.46 billion.

The analysts expected Facebook Inc (NASDAQ:FB) to post earnings per share of 13 cents, on revenue of $1.4 billion. The company has earned 12 cents per share in the first three months and the revenue recorded at $1.05 billion.

Mobile was the main segment on which the analysts were focused in this quarter. The social networking giant has been making efforts to counterbalance its falling desktop revenue through monetizing mobile use. The company stated that 23 percent of the ad revenue earned by the company was contributed by the mobile ad revenues. The investors, however, are not yet very confident regarding Facebook.

But Analysts are Skeptical

Earlier this week Finance daily Barron also said that the shares of Facebook are overvalued. As per the report, the Facebook shares are trading at 75 times its 2013 earnings estimate. The estimates are made as per generally accepted accounting principles (GAAP). Google trades only less than 20 times its 2013 earnings. Google Inc (NASDAQ:GOOG) contrary to Facebook Inc (NASDAQ:FB), is experimenting with a series of new concepts like self-driving cars, interactive eye wear, maps and Android software, says the report.

Facebook Inc (NASDAQ:FB)’s shares are not performing well and closed at $27.57 yesterday. In October per share of the Facebook were priced between $22.48 and $23.29. The IPO of Facebook Inc (NASDAQ:FB) was far ahead at $38 per share than the current prices of the stocks.

On May 18, 2013, Facebook Inc (NASDAQ:FB) will mark the one year anniversary of its botched IPO.


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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@wordpress-785388-2679526.cloudwaysapps.com
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