Why has Facebook’s COO Sheryl Sandberg sold more than half the shares she owned when the social network went public just two years ago?
Now admittedly her holding of 17.2 million shares is now worth just over $1 billion, so she is hardly running away from the company. But the obvious conclusion is that one of the key members of staff at the social network agrees with those who think it’s become massively overvalued.
Ultimate insider sale
This is the ultimate insider sale by somebody privy to the very best information about her key investment. The smart money gets out before valuations crash, not after it.
Has she sold too soon? Inevitably if she has been offloading stock over a prolonged period that is now the case. Then again what will the ‘real’ value of Facebook when the hype is all stripped away and the business has to be valued like any other?
Indeed, can it maintain its lofty position? It is just another media dependent on advertising and if the eyeballs move elsewhere so will the profits.