YOU KNOW, THE MORE I LOOK AT THE EOD PPS "EVENT," the more it looks like an attempt to keep shares from tanking...here's why:
1) major support repeatedly breached, over the past few trading days (...in up markets). technically and fundamentally fragile.
2) the atlas purchase is not news--everybody new FB was buying atlas.
3) this deal is not immediately accretive. (won't integrate for over a year and the effectiveness of FBs ads--which it is supposed to measure-- is still unproven.)
i got other "questionables" too, like continued insider selling, but i am not a basher, and insiders sell for a variety of reasons, not necessarily "nefarious."
i wonder how far this will pop in the a.m.--if it pops at all? and if not i wonder if it will continue with its downward trend? should be an interesting day tomorrow.
it was a dump. If it had been a buy with that volume, the stock should have gone up over $2. Someone dumped FB big time yesterday and we will see that adding to selling pressure when we get to 26.73 again.
Taking into the account that 40 million shares were traded in the last 15 minutes of trading(+10 mill. in after hours), I'd say this was someone getting out of the stock at this point. Using the all famous "sell-on-news" moment. And also, in the after hours, if you monitored the buying(I did), you could see that pretty much all of the 10,7 million shares traded where in huge bulks, like in those closing minutes of the market. The real buying was no more than some 300.000-400.000 shares, if that.
BUT, non the less, I find this move up quite funny and interesting! Because if we look at Slow Stochastics, and using parameters 5,5,5(instead of 15,5,5), we see that Facebook stock reached a bottom here and made a reversal during the trading hours in the market. And then I thought maybe I should close my short position for a day or two, but didn't. The acquisition definitely got announced at the perfect moment looking at S.S.
It pulled back -.37% afterhours. I think it was a mix of such extremely light volume that just a little buying went a long way. But I really just think it was robo trades and HFT positions that caught the story and sent in some shares. I really dont think institutions and retail investors thought this was some revelation and the after hours drop sort of suggests that it was just an ill-advised move up. Looks like we'll see though/
It immediately pulled back after hours to the tune of -0.37%. I think the pop was just robo-event trades. That after hours pull back suggests it was a poor reaction. In my opinion, the best the stock will muster is back to resistance before sellers bring it back. Hold sell or short, but this is no buy right now.
I'm short so I might be bias but if you really like this and are not sure, do what I do... wait on the sidelines. Think about it. It is going sideways which means its about to break up or break down. Just wait until it looks like a serious move is starting. That's my advice.