The big drop in a months time is just the summer doldrums with a distance to next ear once.
The first year the stock was new and the insiders are holding a lot of shares so the number of shares are thin. Tons of people wanted in and funds wanted a FB position in their portfolio. If we look at now, the number of shares have increased from 2 billion (@ipo) to 2.87 billion. The big funds have their positions set. There is no urgency to trade. Many people are just holding. Lower volume iscommon as a company matures. Right now FB is moving with a nice trend but the days of big swings are over due to lower volume.
There are actually currently 2.87 billion shares outstanding 2.32B class A and .549B class B. There will be 3(2.87B)= 8.61 billion share based on the current number of shares outstanding. You are correct in your understanding that the shares will triple. The shares outstanding are based on the current 10-Q SEC filing by FB.
There will be a lot of shares but I think as long as FB does well they will appreciate nicely. I think, however, with the number of shares it will be too hard for FB to make huge gains and become a momo stock again. I believe that FB's pps gains will lag their earning performance but not by much.
Earnings reactions like this go beyond explanation but I have seen the same pattern with numerous other stocks. I would have to say the overall reaction should have been much more positive. Ah makes it look like there will be a lot of momentum and then there is a big fizzle. Even though I have have seen the same pattern with some other stocks , most usually follow the results of their earnings,
Like I said, I don't invest earnings anymore. I have got burned too many times. Being a trader, it seems like I should be able to make a simple earnings call but I can't. When the earnings are pat, or average, it seems as though that is when the stock flies.
I usually wait until the Monday after earnings to trade unless there is something really compelling.
Sometimes it is hard to figure out. I certainly cant. I just don't trade earnings for this fact. There seems to be a disconnect but I do say that over the long term the earnings keep driving FB upward.
It probably would not have much of an effect as long as FB was trading flat. This is based on recent splits especially GOOG and GOOGL. I think you could also hang onto your shares and redistribute it between class A and class C after the split. In the grand scheme of things, I don't think the split will matter too much.
This is a stock board and you are posting garbage. It is too bad you see other people as garbage. Other people don't want to read how angry and hateful you are because you have decided that people have no worth. Now, that sucks. The people here are trying to follow stocks. Go somewhere else where you can commiserate with other people who are full of hate like yourself.
Do you think it is cool to hate? Why are you so angry? Why do you post your hatred on a stock board?
I really do not understand the statement you are trying to make. My reply just is saying a split and dividend are close to the same.
There will actually be an additional 5.7 billion shares and if you add that to 2.85 billion outstanding then that is 8.55 billion shares between both classes of stock. Good bad or otherwise..........................it is what it is.
It is a stock dividend. Most stock dividends are a small fractional share so this is different. In many ways this is very similar to a split. The exception in this case is that a new class of shares are being created. Option treatment is different.
...............but for the most part this is similar to a split. The shares will triple like a stock split, the share price will be 1/3 the pre-split, and like GOOG/GOOGL news will call it a split.
unless you are doing something like immediately selling your class C shares or buying options prior to the split, you wont be able to tell the difference between the split and a stock dividend.
I don't the split will have any adverse affect on the stock. There are actually 2.86 billion (Q1 2016 10K) shares outstanding so there will be 8.58 billion after the split. An example is NFLX which was 90 after a 7 for 1 split almost a year ago and now is 94.45.
The split really is a non-factor either way. More stock means people will just have more shares. It goes the same way for people looking for a big gain from the split. Recent history shows splits are basically meaningless and people are looking for free money.
FB stock will do well if FB performs well and the split will do nothing either way for the share price.
The split won't do much. Look at AAPL and NFLX who recently had 7 for 1 splits. Their splits were non-events. FB will perform based on how well they grow their earnings and not on the split. 120 is not unaffordable for average investor
I'm doing well. Its been a busy last few months. I hope you are doing well.
You cant compare a stock by its price. If you want to make a comparison, compare the caps. FB is worth 327 billion and LNKD is worth 25.5 billion. Now which is cheaper 327 or 25.5.....LNKD is 1/12 FB Caps are derived by multiplying the pps by share price.
Furthmore, growth stocks are not priced on a value basis or a fairness basis. FB is valued on what the market believes the future value or growth is worth now.
Recent history shows that splits have not done much for stocks. Look at GOOG/GOOGL, NFLX, and AAPL. All of the aforementioned were flat 6 months after to their splits. The prices pps wasbrought way down from 7:1 splits for NFLX and AAPL. That should have soured more buying but it doesn't. The share price of FB will just be based on how it performs not on the split. If it performs well like it has, the stock will do well. The split will have no affect on the stock.