Facebook stock sales halted in Q4 2018

The social media company stopped selling stock amid turbulence at the end of 2018.

Facebook CEO Mark Zuckerberg Source: Bloomberg

Facebook halted stock sales in the fourth quarter (Q4) of 2018. This is the first quarter in two years that the social media company has stopped selling shares.

Facebook’s stock troubles

The tech company’s chief executive officer, (CEO), Mark Zuckerberg, stopped sales of Facebook stock at the end of 2018. The app’s reputation was tarnished in Q4 amid a spate of data mining scandals that affected the company’s stock price. The corporation’s shares tumbled by 38% since its record high in July of $218.62.

Zuckerberg pledged in 2017 to give away 35 million to 75 million shares of Facebook stock over the next year and a half. The agreement is part of his promise to give away most of his $53.8 billion fortune. The CEO has since given away 30 million shares that are worth almost $5.6 billion.

Some financial experts like, Lloyd Walmsley, Deutsche Bank analyst, believe that the interruption in the sales of the stock is a good sign that shares are being underrated.

‘It's one of a couple of signs that the company thinks that shares are undervalued. The other sign is the recent refresh of the company's share buyback program,’ said Walmsley.

How Facebook stock sales affect Zuckerberg’s charity work

The stoppage in purchasing Facebook shares has not only affected investors. The move could also affect the CEO’s philanthropy efforts. He and his wife, Priscilla Chan Zuckerberg, have started the Chan Zuckerberg Initiative to fund health and education projects. By tying the sales of stock to charity, the company chair could be limiting the amount he donates if the shares are moving downward. However, the stock can always rebound, and Zuckerberg can able to give back while increasing earnings.


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