Unlike many secondary offerings, the S&P is an excuse for major holders to offer shares. Its a shock to a market that doesn't like surprises. I have no idea why Mark did this because a normal board would not approve this for one individual but Mark does not have a board for all practical purposes. Its a one man show.
There is not one analyst who predicts 100%. The would need to eearn around 80 cents to bring their pe down to 45. Remember the earnings are trailing. Most fund manangers have already bought.
Dude your wrong.......read the prospectus of a couple of funds. They are only bound by what they tell their investors. State Street says they reserve the right to buy or sell shares based on anticipation of a stock being added or deleted from the index. Most but not all will have the stock in their portfolio by the end of the quarter.
Say what you want but I do my dd.
There is a good chance that most have already bought. They also have until the end of the quarter to buy so there is a lot of time left for any who need buy.
I think we have a little problem with math. At 25 percent, facebook would be at. 1.5625 times where it is now in 2 years. 1.5625 x 7.63b does not equal 50b. I think maybe you might have taken 2.5 x 2.5 to arrive at your answer.......that would be a 150% increase not 25%.
Watch the swing off the pivot after open and you should be good.....As long it opens low. It looks good now so GL.
Have a Merry Christmas! I hope the New Year brings you continued success! GL
Two different companies.......Both are trying to make money and I would say Facebook is respectful of its users. Alas FB is trying to make money. FB has a long way to go to overtake GOOG.
154 million shares after hours where there is no liquidity. I don't know where you got that information. Did you know the only rule that governs their buying is what they publish in their prospectus. They are trying to duplicate and blend the companies in the S&P 500 into their funds. The only rules they have is to abide by the rules they advertise. State Street says they may buy in advanced based on the anticipation of a comapny being added or removed from their S & P.
Their ad revenue trippled? Not from last quarter so from when? Please read the prospectus from State Street (has multiple funds in the S&P 500including one of the largest)which states that they may ad shares at anytime based on anticipation of a company being added or taken off the S&P 500. The Motley Fool Video just states that many funds have to over pay.
Mcgraw Hill does not write the rules for these index companies. There are no rules. The just sell products that track this index. Many would be surprised that many of the funds have large amounts of derivtives in their protfolios. Go to the prospectus of all these funds. It won't pop 10% on Friday do to funds adding shares. Maybe there will be some other reason for a rise or maybe there won't be but the S and P is basically done.
For FB to go down to a PE of 45, they would need to report around 80 cents which is ludicrous! You have to remember the PE is trailing. Forward PE'S are a year ahead and are based on non-GAAP multiples so if forward performance is met then PE is likely to be in the 60's. The analysts expect about 10% q4 over q3 not 2x.