Cuban 'takes beating' on Facebook stock
JUN 20, 2012 1:09a ET
Appearing on CNBC's "Squawk on the Street" this week, Cuban said he cashed out on his Facebook stock. Cuban sold 150,000 shares of Facebook stock, taking a loss of $200,000.
"I already sold it, I took my hit, my thesis was wrong. I thought we would get a quick bounce just about the excitement about the stock. I was wrong, and when you are wrong you don't wait, you just get out. So I took a beating and left," Cuban said.
Cuban said that the massive number of shares issued is what has damaged the stock price.
"If Facebook would have come out with 8.4 million shares, instead of 421 million, the stock would be at about $200 right now. So it was just the circumstances that led to me getting in and out," Cuban said.
Cuban knows a thing or two about Internet companies and hitting the market. Cuban co-founded Broadcast.com, which he sold to Yahoo in 1999 for $5.9 billion.
But, for someone with the wealth of Cuban, a $200k loss on Facebook stock is chalked up like losing a poker hand.
"It was gambling money, to be honest with you," Cuban said. "Any time you try to time the market, you get what you deserve. Sometimes you're right. Sometimes you're wrong. This time I was wrong."