Facebook Stocks Reached an All-time High Record Despite The Data Breach Scandal
Recently, Facebook faced the controversy of Cambridge Analytica expose which put around 50 million user’s information at risk. It apparently influenced Trump’s Presidential 2016 election campaign. Although Mark Zuckerberg denied the said allegations and stated that any data breach didn’t happen, some investors pulled out their shares from the scandal claiming that they were starting to lose their trust from the giant social media platform.
For the past 2 weeks, we’ve seen a steady decline in Facebook’s stock performance. The company’s stock plummeted down to $50 billion since the issue exploded. However, did you know that the company still performed well despite this setback? Let us uncover how Facebook maintained their outstanding performance in the international market for the last three months.
Facebook’s Funding for Philanthropic Efforts
During the last two weeks before the CA scandal started, Zuckerberg sold an astounding 1.14 million shares on March 13, 2018. Aside from that, the CTO also sold shares for $20 in the last trading.
An anonymous insider used the Rule 10b5-1 to monitor the company’s sales on a regular basis. This means an investor can purchase executive stocks based on the trading plans and selling decisions of the top management. More investors tend to purchase executive stocks because it doesn’t have any withholding period. They can cancel their plans and investment anytime they want. Moreover, an investor can maximize the profit on stocks based on the executives’ promising plans and decisions for the company.
This enabled Zuckerberg to make his gigantic progress. Last September 2017, Mark announced that he would sell around 35-75 millions of shares for the next year and a half and donate the accumulated funds to their philanthropic efforts. In return, Mark and Priscilla promised to give 99% of the company’s stake through their Chan Zuckerberg Initiative. Aside from donating thier money to fund charity, the shareholders became part-owners of the company too, maximizing their profits in the process.
Facebook Sold More Stocks Than Any Other Company!
The heroic efforts of Zuckerberg and Chan enabled them to sell more than 228,400 on March 8, and 220,000 shares the next day. Meanwhile, they sold over 245,400 stocks in the last three consecutive days before March 15. In just over a week, Facebook sold over a million shares with $183.81 price per trade. The company gained an astounding $210 million payout! Mark still holds around 400 million shares or 13.53% of the company’s stake according to S&P Global Market Intelligence.
Meanwhile, its Chief Technology Officer (CTO) Michael Todd Schroepfer sold over 39,000 shares last March 13 with the same price stated above. His profit increased up to $7,000,000 that day. According to the pattern obtained by the insider, it seems the CTO only sells his executive stocks every 2nd week of the month.
Major Crash in Facebook CEO’s Net Worth
Despite the company’s outstanding performance, the Forbes index noted a decline in Mark’s wealth. His overall net worth dropped from $75 to $65 billion. What’s more, he lost a grand total of $70 billion profit since the CA Issue scandal. Facebook’s price per share declined from $183 to $153 for the last trade this week. While most investors still believe the company’s credibility, we cannot deny that political agendas and propaganda can break a business.
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