I agree with you about FB decline due to LinkedIn's dumping, but LinkedIn's dumping was exasperated due to the Lack of the UP-Tick-Rule!!!!! Unrestricted shorting can and will destroy any sized company by a team-wolf-hedgefund attack. Way too much money in their banks to pick and choose any stock and drive it to the moon or crush it within hours.
face book is making it off the rigged casino site called Double U. People are spending massive amounts to play there. They buy the chips and then they play where the computers are rigged to cheat them especially their blackjack tables. they run a big scam site and face book collects the money selling chips noting more nothing less. if face book looses that site they will go out of business. check that out.
i like this way of thinking ...i also sold at $110-112...made a lot ...said i'd wait it out....but it draw me in too soon...didnt expect todays drop...hope fb picks up again...just need more patients
If you love FB, and it's a great company, sell covered calls on exuberance. when it pops, go out of the money with long calls. Premiums are high, bank the cash, and you can withstand the computerized algo drop days like this. Your money is in the bank. When the stock gets cheap, you can buy the call back, or just wait things out. Think of the premiums like paying yourselves a fat dividend which growth stocks usually don't do.
When FB hit 110, I sold August 125 calls, took in a lot of cash. I can stand the $6 drop today caused by the fast trading jerks on Wall St.
Do you actually think any posts on here effect a stock price? Be real. This board is all retail investors who have no control over any share price.
It is all relative. Meaning, in a Bull market it trades on a reasonably valued earnings multiple relative to its growth rate at around 1x. In a Bear market, it is significantly overvalued on that metric alone. Bear markets do not care about growth rates because it throws growth out the window. You could look at many other measures and call it overvalued as well. Difficult to call it undervalued unless you pull 2017/18 forward. Point is, just have to figure out which market you think we're in and you will have a good idea where FB is headed in the near to intermediate term.
I can tell you this. I have about 20% equity left from my 'Buy Anything Under 25' post right on this very message board. Sold half at a double. Next 15% was sold at a triple and now another 15% sale was closed at 117 this week. Said it was going to 120 when it broke 100 and still believe it will in time, but 117 was close enough for me in this market environment. Pure Luck on the timing part of this last sale. As I sold the first half, I have been using that capital to trade the options both ways. So have added many gains/losses on top of the equity gain. Net/net, more positives than negatives. But now have 80% of all of that FB capital parked in cash awaiting the next trade. Sleep much better that way. The 20% that remains can go to 0 and it won’t matter. The cynic in me says I will be able to put this ‘Buy Anything’ trade on all over again starting at roughly the same prices. Or maybe I have been staring at the price gaps in the stock way lower from here for far too long.
Now that we got the gloom out of the way, I’ll leave you with this. I think FB is one of the greatest growth companies of its generation, with a leadership team that has the potential to also turn its stock into a generational one. And for that, I have no intention of selling that last 20% equity stake until I see something different.
WAIT or short until we get the 97 gap, a 1776 S&P print, or mid-month, whichever comes first. We made A LOT of money on the ER trade and the days thereafter. Please tell me you hit at least one of those long call trades out of the park along with WW. You asked for them in real-time. WW gave them ALL to you ahead of time. Not to mention, you had plenty of opportunity to get better prices than me. The only thing I didn't give you was the short. To be fair, even WW did not short FB this week. Just AMZN, TSLA and CMG.
DAVOS, Switzerland, Jan. 22 (UPI) -- Billionaire hedge fund manager George Soros said the Chinese economy is in for a "hard landing," after stock markets tumbled early January in the world's second-largest economy.
Nice post k_henien. and nice entry on your part. I recall a time when Facebook was posting good quarters and price would have big swings right at reporting because of the nice beat but yet conference calls containing the spending issue cause all kinds of knee jerk reactions, but the most recent 2 consecutive quarters Facebook was beating estimates along with having great conference calls as spending were turned out to be great investments for growth and along with that positive guidance. Positive guidance is more important than anything especially with growth stocks. That was a green light to hang on to Facebook. Growth stocks comes with volatility. The Long term investors will realize that and the swings does not bother them. And as lon term goes, Facebook through the volatility/swings has been higher over time.