RED FLAG: Facebook is Losing This Key Support

In order to try and stabilize Facebook’s (NASDAQ:FB) stock, which hit a new low on September 4, CEO Mark Zuckerberg has committed to hold on to his over 440 million shares for another year, and not sell up to 122 million shares in a second offering. Board members Marc Andreessen and Don Graham have also stated that they “have no present intention to sell any shares” after off-loading some to cover tax liabilities.

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Their commitment, however, may be overshadowed by those with less faith. In August, Peter Thiel, Facebook’s first outside investor, sold nearly all of his holdings for $395.8 million. Now, it seems like Co-Founder Dustin Moskovitz is bowing out as well.

Moskovitz has been slowly offloading his nearly 132 million shares since August 17, completing twelve 150,000-share trades, 1.8 million total, for $34.5 million. The pattern so far suggests that the trades will continue. With the most recent trade on September 4, Moskovitz has the power to undermine the flooding effect Facebook is trying to avoid.

October will see Facebook’s third quarter financials and the end of the early employee lockup. With 234 million shares opening up, other investors and company insiders may follow in Moskovitz’s and Thiel’s footsteps if Facebook can’t turn itself around.

Now that you know what Moskovitz thinks, check out our more objective analysis of Facebook’s stock >>