Cuban revealed last month on his blog that he’d purchased 150,000 Facebook shares in three separate buys. He said he considered the purchases a trade rather than an investment, likening them to buying baseball cards in anticipation of selling them at a card show later.
The owner of the NBA’s Dallas Mavericks told CNBC yesterday that he’d sold all of his shares in the social media giant after the price failed to rise. He added that he didn’t wait around when he knew he’d made a misstep, so he “took a beating and left.”
Cuban said Internet companies like Facebook and Zynga (NASDAQ:ZNGA) faced a problem in trying to monetize mobile interactions.
Facebook issued too many shares, Cuban complained, driving down the price. He cited LinkedIn (NYSE:LNKD), which issued only 8.4 million shares in its IPO, compared to 421 million shares for Facebook.
Facebook shares rose just over 1% in Tuesday afternoon trading, rising to just under $32. LinkedIn shares were also up about 1%, trading over $106.