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Even insiders dislike Facebook

July 12, 2013: 3:35 PM ET

From Day 1, Facebook shares have been lagging the broader market.

Facebook attracts plenty of users, but the stock continues to have trouble with shareholders. Even its top executives are selling shares.

The most prominent of the recent insider sellers is Facebook (FB) COO Sheryl Sandberg, who sold almost 170,000 shares, according to a Securities and Exchange Commission filing Thursday. She also sold almost 7,000 shares from her family trust.

While Sandberg and the other top dogs at Facebook still own plenty of the company's shares, the selling activity gave traders on StockTwits plenty to chat about. Shares of the social media company were down slightly Friday, but are down 30% from the May IPO.

 IPOTrader
If $FB is such a viable play 4 the future then y arent mr z & sheryl loading up on shares? color me curious.

Insider buying and selling is fairly common in the corporate world, but that's a fair point. Given that Facebook shares have traded below their IPO price since hitting the market and trail the broader market's performance by a good amount, why wouldn't company executives buy up shares to encourage a little faith among investors?

At least one trader thinks Facebook doesn't have much staying power as a social media platform.

 Swerve
I used $FB for the past 4 years.. and I haven't logged on in months. This will quickly turn into myspace.

But another countered, arguing that Facebook has a strong competitive edge -- except perhaps against Google (GOOG).

 cornfield9
A lot of little companies can't remove $FB only one big can such as what happens to MySpace, Only "real" threat to $FB is google lol.

OK, there's a bit of sarcasm there, probably because Google Plus hasn't exactly been a roaring success.

But even if Facebook is the king of social media in terms of users, it's continuing to struggle to become a viable business, which is of ultimate importance to investors. Billions of users aren't enough, as two traders pointed out.

 OksanaJil
$FB If LNKD is 200$ with 250 mil.users.. Then $FB should be 1000$ stock. with 1,3 billion users.

 MidnightDreary
@OksanaJil There's something to be said for the value of the user. $FB has more users. But $LNKD users are worth more. Frustrating action.

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Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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