Arca Capital Bets Big On Facebook: Buys Kc1.5 Billion SharesČTK
Prague, Aug 10 (CTK) – Czech-Slovak financial group Arca Capital has made use of the recent drop of shares of social network Facebook on stock markets in the USA and has bought Kc1.5bn worth of these shares, server E15.cz said today.
Facebook shares plummeted by 19 percent within one day after the release of the company’s business results at the end of July. Facebook’s market value thus fell by about USD120bn (Kc2,600bn).
Arca co-owner Pavol Krupa said he believed in the future of Facebook.
According to Krupa, the drop of Facebook shares was an exaggerated reaction to well-known facts and Arca Capital is already earning around USD10 per share from the investment.
Arca was buying Facebook shares both during the record-breaking drop as well as several days after, E15 noted.
Facebook’s revenues rose by 42 percent to USD13.23bn in Q2, lagging behind analysts’s estimates of USD13.36bn. The growth was the slowest in almost three years.
According to analysts, Facebook’s Q2 results are the first sign of negative influence of the EU’s new regulation on personal data protection and the scandals concerning handling of users’ data.
Arca Capital focuses on asset administration, the energy sector and search for new business opportunities. It operates mainly in Central and Eastern Europe and has representation offices in Bratislava, Prague, London and Kiev.
Arca was majority owned by Krupa until mid-December 2018, since when Krupa has been holding 30 percent, an equal stake as Rastislav Velic and Peter Kristofovic. The remaining 10 percent are owned by Henrich Kis.