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Comment by chris_wot | Hacker News Reader

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chris_wot·

The lockup agreement expired. Looks like employees and executives are selling up big time.

http://www.marketwatch.com/story/etsy-shares-fall-after-expi...

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To be fair, most of the loss occurred in the past year before that:

* -72% from 4/17/15 to 1/10/16

* -3% more if you extend through 1/11/16

* -2% more than that if you extend through end of week

https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&...

Side note: I wish there was a tool to track such dates and notify you as a (potential) public shareholder.

...and rightfully so since Amazon entered the space back in October. That's a killer blow to a business that has struggled since it went public.

It seems like this would be expected behavior to some extent, couldn't you short a stock right before lockups expire and make easy money?

The risk of the drop (at the time of lockup expiration) is priced into the stock before the lockup expires. So, if the lockups expire, and there is no big sell-off then, the stock price might go up.

Good point, thanks.

That's crazy. The employees owners just gutted the value of their own company.

Alternatively, they are informing the market of their perceived value of the company.

Or rationally reacting to having their net worth concentrated nearly entirely in a single security. Contrary to essentially all financial advice.

...and? Would the company not do the equivalent to them?

Former "owners" after selling stock. And if people building and running company don't want to own it anymore...

It could well be that the employees did that after management made decisions that they feel gutted the value of the company anyway.

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