Two articles today discussing the coming end of the Facebook IPO lock-up. Yes, it is possible that (as the Bloomberg story argues) the number of shares suddenly available – and the fact that some of the potential sellers are actually making a profit even at depressed prices – could trigger a sell-off. It is also possible, as the NYT piece argues, that some of the shareholders are long-term oriented or strategically invested – for instance, Microsoft – and could hold on, and then the “non-event” could actually trigger a rally. As one investor put it, in what has to be the irony of the year, “when does Facebook gets stupid cheap?”
Cheap, I don’t know. Stupid, on the other hand, seems to apply to the whole episode.