The number of shares sold short in this social networking giant jumped about 48 percent to near 40.01 million, the highest level of short interest so far this year. That was on top of a 15 rise in short interest in the previous period, and it represents more than two percent of the total float.
Facebook is expected to post annual revenue growth of more than 30 percent both this year and next. The company has a market capitalization of almost $114 billion. While its long-term earnings per share (EPS) growth forecast is about 30 percent.
Of the 40 analysts who follow the stock and were surveyed by Thomson/First Call, 13 rate the stock at Strong Buy, and 16 others also recommend buying shares. The mean price target, or where analysts expect the share price to go, is more than eight percent higher than the current share price.
The share price has retreated more than seven percent in the past week.