> Who else is going to sell Facebook stock if not "insiders"
You don't understand the IPO process.
Normally, it is a company with more opportunity than capital. So it creates additional shares and then sells it during the IPO. This process is just like raising capital with VCs, except the term sheet is effectively between the new investors and the company, with the SEC adding all sorts of post-its with additional conditions.
Only since bubble v1 was it seen as some sort of "achievement" for a company; An IPO is nothing more than a poor company begging for money and willing to cause dilution in order to fill its tin cup.
>Normally, it is a company with more opportunity than capital.
Although this was of course the original rational for IPOs, this looks more and more like a historical footnote these days. Now that so many IPOs are late-stage it's hard to see them as anything other than liquidity events for founders and investors and employees.
There are two sides to the IPO: The seller and the buyer. Buyers who see "liquidity events for founders and investors and employees" as a valid reason for buying the IPO will continue buying until they don't, just like other bubbles.
The other way to look at is that these employees wanted to sell their shares, to lock in their gains and diversify. They could sell them as part of the IPO, or they could wait 6 months after the lock-out. They choose to sell immediately, which means the employees at least think it's a bubble.
Employees know what deals are on the table waiting to close, and new product announcements, and all sorts of things related to the stock.
If they think the stock is going to double in the next 6 months, do you still think they'd sell? Even if they say "It's my money and I need it now!" brokers would be happy to offer a loan using the shares as collateral for any immediate money needs.
If somebody is selling, they don't think the shares are about to double, plain and simple.
You don't understand the IPO process.
Normally, it is a company with more opportunity than capital. So it creates additional shares and then sells it during the IPO. This process is just like raising capital with VCs, except the term sheet is effectively between the new investors and the company, with the SEC adding all sorts of post-its with additional conditions.
Only since bubble v1 was it seen as some sort of "achievement" for a company; An IPO is nothing more than a poor company begging for money and willing to cause dilution in order to fill its tin cup.