This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The 5 Dumbest Things on Wall Street This Week: Aug. 24

2. Thiel Lacks Appeal

Look, we don't care if Facebook (FB - Get Report) director Peter Thiel unloads his shares. Let him throw the millions on the pile. He's a venture capitalist, that's what they do.

We just want to know what happened to the company's CEO Mark Zuckerberg? You remember him, right? Reddish hair. Hoodie. Acts a bit like Jesse Eisenberg in The Social Network.

Hey, we've got an idea. Maybe discouraged investors should put his face on the back of a milk carton. Got Zuck?

Yes, it's been roughly three months since Facebook's infamous IPO, and while the stock continues to go down, roughly 50% from its pricing at last check, the scuttlebutt surrounding the high-profile fiasco refuses to die down. The latest bit of gossip involving the company came Tuesday with the news that Thiel sold roughly 20 million shares, netting about $400 million.

Thiel still owns 5.6 million shares even after his major-league purge and that's still a serious amount of skin in the game. Nevertheless, the question was raised, and raised again and again, as to whether the PayPal co-founder's decision to lighten his load was yet another sign of Facebook's apocalypse.

The answer to that question, at least our answer, is no. Not that Facebook isn't crashing and burning. It clearly is and it will continue to do so until Zuck emerges from the billionaire protection program waving a mobile strategy for his company.

But as it relates to Thiel's sale, the venture capitalist filed his intentions with the Securities and Exchange Commission on May 18, well before the stock hit the fan. So while his timing looks next to awful, and it's true that he could have altered or spiked it, we'll give him the benefit of the doubt that he didn't mean to kick his own company while it was down.

Nevertheless, we do believe that as a director, and a high-profile one at that, Thiel should be encouraging the brass at Facebook to show their faces in order to reverse the public perception that the offering was just one big money suck. And since he scored big on the IPO -- his original investment was $500,000 in 2004 -- Thiel can do a lot to help on that score.

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ZAGG $8.79 0.00%
BBY $36.46 0.00%
FB $80.78 0.00%
SWSH $1.86 0.00%
AAPL $124.75 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs