Facebook Chief Executive Mark Zuckerberg laughs as he addresses students at the Moscow State University in Moscow October 2, 2012. (Photo : Reuters)
Facebook shares are up 10 percent today after the release of the largest pool of new shares of the tech company since its initial public offering in May.
Over 800 million shares that had previously been locked up--prevented from being sold by regulatory agencies--became available for sale, doubling the number of Facebook shares on the market.
Some investors worried that the share price would plummet, as happened shortly after the IPO, and often happens when the market is flooded with new shares of any company.
But for now, the price has been buoyed by buyers looking to get a piece of the social media giant.
There has been speculation about which Facebook shareholders would hold onto their shares, and which would sell, likely becoming millionaires in the process.
The tradition among Facebook employees is to sell off a chunk of shares as soon as legally possible, cashing out and perhaps moving on to other ventures or companies.
When the market opened this morning, shares of Facebook were trading at $20.08, far below their IPO debut of $38.
But by this afternoon, the price had jumped to $21.90.
However, some analysts think the price bounce will be short-lived, as Facebook struggles to find new revenue sources in the crowded mobile market. More than half of Facebook's users interact with the site through their mobile phones, which makes it harder for Facebook to deliver targeted advertisements.
""Facebook doesn't control your device; they don't have the operating system. The operating system on mobile is really just two companies. One is Google with Android and the other is Apple with iOS. Those are the companies that really know everything about you," said Richard Greenfield, an analyst at BTIG.
Whatever direction the stock moves, investors will have at least two more chances to try their luck, Facebook releases over 150 million shares in December and another 47 million next May.