Facebook jumps on biggest lock-up expiration day
By Barbara Ortutay
Topics: From the Wires, News
NEW YORK (AP) — Facebook’s stock is up more than 7 percent despite expectations that it would fall because more than 850 million additional shares in the company are being freed up for sale.
Shares of Facebook Inc. are up $1.48, or 7.5 percent, at $21.34. Facebook went public in May at $38 in a much-hyped initial public offering of stock that turned out to be a letdown for investors. Its stock price hasn’t hit $38 since.
Wednesday marked the expiration of Facebook’s biggest lock-up period, which is a time following an IPO that prevents insiders from selling stock. In all, 773 million shares became eligible for sale, along with 31 million restricted stock units. And about 48 million shares held by former Facebook employees also became eligible for sale, bringing the total to 852 million. These shares would be on top of what’s already been available for trading, increasing the supply and potentially lowering the overall price.
Lock-ups are common after initial public stock offerings and are designed to prevent a stock from experiencing the kind of volatility that might occur if too many shareholders decide to sell all at once.
The previous lock-up expired on Oct. 29, when U.S. stock markets were closed because of Superstorm Sandy. Facebook’s stock fell nearly 4 percent two days later, when the stock market reopened.
Cantor Fitzgerald analyst Youssef Squali believes a potential increase in the capital gains tax on Jan. 1, when Bush-era tax cuts would expire unless Congress acts, could pressure Facebook’s stock. That said, he called the Menlo Park, Calif.-based social media company a “long-term winner.”
Facebook’s stock saw its biggest one-day gain on Oct. 24, the day after the company reported stronger-than-expected third-quarter results and detailed for the first time how much money it made from mobile ads. The stock, which added 19 percent that day, closed at $23.23. Even with Wednesday’s gain, it is still 8 percent below that price.
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Mobile Entertainment: 9 Amazing Drive-In Movie Theaters Still Standing
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Two-for-one for Everyone — West Wind Solano Twin Drive-In, Concord, Calif. This family-friendly attraction with several spots across the U.S. (including California, Nevada and Arizona) prides itself on offering first-run double features (save for premiere events) on the cheap — which is quite the deal, considering their 65-foot screens are among the biggest in the biz. And if you have great car speakers, even better: squawk boxes of old have been replaced with Dolby quality audio piped through your car’s FM stereo.
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For the Four-legged Friendly — Warwick Drive-In, Warwick, N.Y. Northeast city slickers looking for a place to watch their favorite movie stars under the stars need only veer six miles east of Vernon, N.J. What began as a family affair in 1950 has since become a seasonal institution offering rural and urban (and pet!) audiences two movies for the price of one on any of its three giant screens.
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See Stars Collide — Ford-Wyoming Drive-In, Dearborn, Mich. Open year-round (unlike many of its surviving contemporaries), this five-screen staple of the Midwest known as the “largest drive-in in the world” plays host for up to 3,000 cars on any given night. And if the double-feature doesn’t hold your attention, relax; you’ve got the best (car)seat in the house for the occasional overhead meteor shower.
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A Hole (Lot of Fun) in One — Wellfleet Drive-In, Wellfleet, Mass.Built in 1957 and still offering original mono sound boxes for those looking for an authentic experience (or not, as FM stereo is available as well), the summer-exclusive theater hosts double features of first-runs on its giant 100’ x 44’ screen. Come for the movies, stay for the mini-golf and flea market (on select days).
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Go Big or Drive Home — Bengies Drive-In, Baltimore, Md. The only thing bigger than Bengies’ prolific history (57 years and going) is its main attraction — boasting the biggest theater screen in the U.S. at 6,240 square feet. That’s 52’ x 120’ of pure anamorphic presentation. Complementing its time capsule of a snack bar (unchanged since ’56), previews old and new occupy the venue’s old-timey intermissions between features.
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Proof That Film is Forever — Shankweilers, Orefield, Pa. While we’re on superlative street, consider stopping at this roadside treasure: America’s oldest drive-in. Operating since 1934, it may not have the frills and pony rides of nearby Becky’s Drive-In, but it’s defied hurricanes and the wear and tear of time. Worth the one-hour drive from Philly.
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The Gritty Hollywood Reboot — Corral Drive-In, Guymon, Okla. Like a slasher movie menace that died (several times) in the ’80s only to be rebooted years after, the long-vacant Corral Drive-In was resurrected and restored in 2009, providing big entertainment at a nominal fee. And if the $6 adult admission doesn’t make you feel like a kid again, the venue’s inflatable bouncers most definitely will.
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Hop the Healthy Highway — Delsea Drive-In, Vineland, N.J. Less than an hour’s trip from Atlantic City, New Jersey’s only drive-in offers the best of both worlds — old school aesthetic outfitted with modern tech and healthier food choices to boot. Open seasonally, with first features beginning around dusk.
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Bring Your Backyard to the Big Screen — Starlight Six Drive-In, Atlanta, Ga. As much a backdoor barbecue as it is a night out at the movies, this six-screen Atlanta drive-in encourages what most in the theater biz forbid: bringing your own food and grilling it. Those looking to add a hip twist of the theatrical to their Labor Day getaway need only stock the cooler and pack some brats or burgers for the Starlight’s annual “Drive-Invasion,” which features a hot-rod show, live music, and B-movies galore.
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And really, what better way is there to cruise the nostalgia highway of old Hollywood than in a MINI Roadster? Allowing all the headroom one needs to see the stars on the screen and those directly above, the 2013 convertible goes the distance where it counts — on the road (obviously), not to mention the discerning driver’s wallet. Never mind that its fun-size frame also makes motoring in and out of tight traffic all the more enjoyable (or parking in even tighter spots for cozy romantics all the more convenient).
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