BuzzFeed Stock Tanks 41 Percent After Initial Investors Allowed to Sell

BuzzFeed’s stock tanked 41 percent on Monday after the company’s lockup period expired, allowing its initial investors to sell their shares freely.

BuzzFeed’s stock has consistently declined since the company’s initial public offering in December. Since the company has been publicly traded, BuzzFeed has lost three top editors, called for buyouts in its news division, and cut its workforce, according to Business Insider.

A BuzzFeed spokesperson confirmed the stock’s dive was due to the lockup period’s expiration on June 1.

As the Wall Street Journal explained:

Many companies going public have a lockup agreement in place for insiders preventing them from selling their shares until the end of a designated period. Such a move is typically intended to reassure investors that, at least initially, there will be no new large blocks of shares coming to market that might be a drag on the share price. – READ MORE