Netflix CEO buys $1 million in Facebook stock
Does Reed Hastings have more confidence in the social network than in his own company?
Hastings has served on the Facebook board of directors since June 2011. He also serves on the board of Microsoft (MSFT).(Microsoft owns and publishes Top Stocks, an MSN money site.)
Facebook shares have lost more than 40% since the company's IPO debuted at $38. Many investors who bought into the shares after the IPO are angry at the insiders and early investors. But to be fair, nobody was forced to buy the stock.
Facebook shares were priced at unsustainable levels at the IPO. The company has yet to find a way to monetize its user base, and its growth is slowing. Two and half months after the IPO, Facebook's lockup period will start to expire. On Aug. 15, 268 million shares will hit the market. On Nov. 14, 1.3 billion more shares will become available. With all these shares flooding the market, it will be interesting to see how the stock fares.
Hastings sold Netflix shares constantly over the past few years when the stock was trading at almost $300. He stopped selling when it collapsed to $111 a share. Netflix was trading Friday at $58 and change.
Does Hastings' purchase indicate that he has confidence in Facebook stock? Or at least he has more confidence in Facebook than in Netflix? Above all, he never bought any Netflix stock after the price collapsed.
These are the details of Hastings' trades with Facebook and Netflix.
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