Hollow hype comes back to haunt:
Facebook Inc. (FB)’s stock plunge has robbed Goldman Sachs Group Inc. and Microsoft Corp. (MSFT) of much of the potential gain they could unlock as soon as this week, when a ban on sales of insiders’ shares begins to lift.
Investors including Goldman Sachs, Microsoft and Accel Partners, which together control more than 200 million shares in the owner of the largest social network, can begin selling them on Aug. 16 for the first time since the May 17 initial public offering, according to a regulatory filing. It’s the first in a wave of lockup expirations in the coming months that will quadruple the number of shares that can be traded.
The story goes on to point out that Facebook’s stock plunge is the worst among all large IPOs on record.