Up on 33% volume....must be ready for move to the downside
There's already billions of shares out there, and the FB insiders who are going to sell are simply not going to sell all their shares even @ $18, so the dilution will not be as dramatic as anyone thinks. A block of $1 million of FB was just bought at $21, so a floor of $18 seems perfectly reasonable during the unlocking period.
Also the botched IPO and overreaction to only meeting revenue expectations, along with a general hatred of the stock are already baked in. The business model isn't the immediate issues as long as FB keeps meeting its revenue expectations the next 2 quarters.
As for valuation, FB has a P/E of 70, we all know. But LNKD is considered fairly valued with a P/E of 900. Calling all shorts - time to abandon FB, and hit LNKD.
The rumors are that FB insiders, hedge fund analysts and hard money have set a floor for FB at $18. You may see $15 or $16 for a day or two during the unlock, but you won't see that again until the end of November. Or maybe never.