Friday, March 9, 2018

Peak Facebook? Insiders including CEO Zuckerberg dumping stock as users spending 25% less time on the platform

Perhaps it shouldn't come as a surprise that like the dying liberal print media, social media platforms are beginning to experience their own backlash for seeking social justice over that of fiduciary responsibility.  And in a double entendre of bad news and worse news for the world's number one social media site, it appears that Facebook may have already reached the peak of its popularity and is turning towards the path of MySpace.

User Participation on Facebook down 25% since introduction of algorithm to kill conservative news

While Facebook grapples with an explosion in overheadexpensive regulations in Europe (and possibly soon in the U.S.), a staggering decline in traffic, backlash over conservative purging and pedo questionnaires, and a former executive who went public in December with his "tremendous guilt" over helping to hook people on the "internet crack" that is social media - the Silicon Valley behemoth is facing a new challenge; a 24% drop in the average time spent on the site.  
Now new numbers have been released that go through December, and the problem only seems to be getting worse. The updated data shows that Facebook’s core platform lost 18% in time spent, which is a huge change from the month before. This, says Pivotal, reflects a 24% decline in time spent per person.” Instagram, too, saw some poor engagement numbers. Though aggregated consumption went up, the user base went up at a higher clip, meaning that time per person went down 9%. -Fast CompanyZerohedge
Needless to say, the data mining operations that proliferate Facebook appear not just to be commodities bought and sold to advertisers (and perhaps governments agencies?) as it is easy to believe that insiders and shareholders who saw the writing on the wall of falling platform participation could be using this information to dump shares on the prospect of even greater declines.
As it turns out, Mark Zuckerberg and a long list of other insiders unloaded plenty of Facebook stock during the month of February. Of course, it is tax season, after all, and Zuckerberg continues to sell stock to fund the non-profit he supports with his wife. So now that February is over with, does that mean the Facebook train will be leaving the station again? At least one writer thinks that’s highly unlikely. 
Regulatory filings with the Securities and Exchange Commission reveal that Zuckerberg unloaded approximately 2.7 million shares of FB stock in February, and Reuters estimates that he raked in $482.2 million for the Chan-Zuckerberg Initiative. Just this week, he unloaded about 685,000 shares for a total of $125.4 million. 
Zuckerberg isn’t the only insider to sell Facebook stock during February, however. SEC filings reveal a long list of other insiders who also sold FB stock. VP David Fischer converted some restricted stock units this month and sold thousands of shares, including about 18,000 shares this week as part of his prearranged trading plan. 
Other insiders who have converted and/ or otherwise moved around some FB stock this month include Chief Operating Officer Sheryl Sandberg, Chief Financial Officer David Wehner, director Kenneth Chenault, Chief Technology Officer Michael Schroepfer, General Counsel Colin Stretch, Chief Product Officer Christopher Cox, and director Jan Koum. That’s quite a list, as usually insider sales of Facebook stock occur on a much smaller scale, based on the regulatory filings of insider transactions. 
February just wasn’t a good month for FB stock, as it was in a downward trend for much of the month. We can put this into perspective when we realize that the stock has gained a whopping 536% in the last five years. It was bound to take a breather at some point, and analysts have been attempting to soothe investors’ fears by saying that the sell-off is simply irrational and the worst will be over soon. – Yahoo Finance
Just remember that insiders only have to REPORT their selling of stock, they don't need to tell the public the reasons why... as all one has to do is go back the case regarding the insiders at Equifax who were found to have sold shares with the knowledge that the credit agency had been hacked, and long before this news had been told to the public.


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