For anyone who's got tunnel vision on MM here - the S&P 500 is ripe for a correction of the past year's advance, and there is casus belli with emerging market forex meltdowns going on in e.g. Turkey and Argentina. Global markets are stuffed to the gills with leverage from easy money policies of central banks around the world fomenting a quest for yield w/o regard to risk - AKA "picking up pennies in front of a steamroller". The global financial system is interconnected and events in places you normally don't think about can and sometimes do set off chain reactions.
In an unfolding correction, there is no reason to expect that stocks w/no track record of real earnings or beating guidance are going to somehow magically be given the benefit of the doubt, and get bought to the sky regardless of what is happening around them.
Stocks like for example MM.
Assuming you are right regarding the correction, would that correction cause people to stop viewing mobile advertising? You could make the argument that companies will stop purchasing mobile advertising, but I think MM has a lot less fat to cut than the S&P 500.
No, that's not what I'm saying at all. I'm saying that in a correction, rightly or wrongly, the majority of stocks can get sold off and/or fail to rise, or rise as much as they otherwise would, on otherwise bullish developments. Because in a correction, stock-to-stock price movement correlation increases, because in general the market becomes more risk averse towards stocks as an asset class.
In other words, in a correction, both "good" stocks and "bad" stocks can sell off, because of the fact that they are stocks (i.e. they are a riskier asset class than bonds).
Part of the premise of the value investing discipline is that markets get irrational and misprice stocks from time to time, particularly in corrections, and in those events, value investors step in and buy, at a discount, stocks that have been irrationally sold off.
Again, all true ... but my feeling is it's shorts covering, just like the 300000 bid that filled at the 6.73. Shorts here have certainly benefited from the bad market the last 2 days. We could very well have a Q4 beat coming with Jtap in and MMX rolling out. I have no hard data, but that redefining advertising MM SVP certainly does.
The thing is, though, that could have been daytraders covering day trade timeframe short positions just as easily as it could have been well connected longer term players, or manipulators and cheats scooping up the booty after shaking the tree. It could even have been the market maker squaring up his books for the weekend. For all we know there could be some global macro blow-up this weekend that brings the international central banking cavalry riding to the "rescue" Sunday night, and the markets rip higher again on even moar free money.
Since we can never know, we should ... wait for it:
Always manage risk.
Didn't see that one comin', did ya? ;)
I'm sorry but there are some stocks that are green today. And most stocks that are red aren't down 8%. And a question for all of you people- what do you make of the huge blocks being sold of 80k+ shares?