Facebook (NASDAQ:FB) made its very complicated debut on the Nasdaq seven months ago. The world’s largest social media network faced many issues, including everything from opening day trade confirmations to mobile growing pains. Shares were cut in half in the months following the initial public offering, but recently found support as short sellers appear to be on the run.
Despite falling into the teens, Facebook’s stock price showed a clear shift in sentiment after its largest lockup expiration occurred in mid-November. More than 800 million shares became eligible for sale, nearly doubling the company’s public float. However, shares jumped more than 12 percent to poke above $22 a share.
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Tim Ghriskey, chief investment officer at Solaris Group, explained, “While the lockup is expiring, there is nothing requiring anybody to sell. Given the low prices, these long-term holders are deciding to hold the stock, and that is lifting it here as the fear of the expiration subsides,” according to Reuters.
Short sellers are deleting positions left and right…