Facebook Coffee Trader: Facebook Coffee Trade Policies Could Cause Coffee Markets to Fall, Report Says
By Sarah B. CollinsThis article originally appeared on Business Insider.
Follow Business Insider:On Tuesday, Facebook CEO Mark Zuckerberg announced that the social network will start trading in coffee futures contracts.
The announcement came on the heels of a recent article from the Wall Street Journal that highlighted how Facebook was planning to start trading coffee futures at the end of 2017.
According to the Wall Journal, the move by Facebook is expected to generate $1 billion in annual revenue.
The WSJ also cited Facebook’s strategy to buy back coffee futures with an estimated 1.5 billion shares of the company’s common stock.
Facebook has not announced how much the company will buy in the futures market.
According the Wall St Journal, Facebook plans to buy more than $1.5 million worth of coffee futures in the first quarter of 2018.
The Wall Street Bulletin also reported that Facebook would start trading its coffee futures by the end, but did not provide an estimate of when the coffee futures would start to be traded.
On Monday, Facebook’s stock fell 5% to $7.66.