Grant’s Interest Rate Observer picked up a Washington Post article noting that Facebook is now being investigated for treatment of user data by all of the Securities and Exchange Commission, the Federal Trade Commission, the FBI, and the Justice Department. Being investigated by all these agencies together does not sound like fun. Maybe Zuckerberg should have bought the Washington Post when he had the chance. Usually when Washington really lays on the heat like this, it means one thing: it wants more campaign contributions.
You wouldn’t know this from the performance of Facebook stock which just hit an all time high. Grant’s also notes that the top executives of Facebook including Mark Zuckerberg are all selling. Zuckerberg has announced that he will sell between 35 and 75 million shares. So who is buying? Probably index funds that by definition have to buy more of expensive stocks than cheap ones. Do all those index fund investors understand this? Not likely.