The Motley Fool article only talks about the present NOT the future. Share prices are based on next year's earnings and sometimes further out than that. With so much of FB's business yet to be monetized, and when I say "about to be" I am talking beginning of 2016 less than 6 months away, this article is actually worthless. Frankly to write a story saying that expenses are causing the earnings of a company to decline is not forward looking. And that's a big error. All shares are priced based on forward looking earnings estimates. Most analysts models fail to get it right regarding a lot of the revenue sources FB will be generating income from. Whether the writer applauds the expenditures (he does), who is this guy? Why should his opinion matter? Only to a retail investor (it might). Sure right now if you want to use expenses that went up 82% as a way to determine valuation, it's a big mistake, GAAP or non-GAAP. And WS knows this. At least the writer says that FB valuation isn't in nosebleed territory. But his mistake is saying price for isn't at a bargain either. If you just look at expenses, sure you can make that argument. Then you also need to add the currency headwinds. That took out 20% of earnings value. The writer says he doesn't see much upside. Again, who is this loan shark and why should we care? There are so many revenue streams just beginning to become part of the FB story. Why doesn't the writer add that to his biased piece? Never once does he write about what's coming. A fair and balanced analysis always includes past present and forward looking data. He conveniently leaves the forward looking data the future out. Not an accurate assessment if you ask me. So many people live to take the articles they read and use them to make themselves feel better about their position. But it's just as important to do your own due dilligence. Yes there might be a gap fill to $91 & $89. But that hardly means FB is in trouble. Healthy pullback on its final leg to $100+.
short you are. or why else would you want the market to crash?
Timewarp-Ok gotcha. Think we close around $95 and do this again on Monday with a better, more sustainable result with monthly options out of the way.
What do you mean by 'slope and target?' Technicals indicate it must close above $96.25 for the uptrend to continue or support at spx5% at $92 is still in play. If it DOES close above $96.25, then spx15% around $105-ish would be next stop with possibly of overshoot at $107-$108. It worked when FB was $85 (spx5%) then spx15% was $97 (overshot to $99.24). Thoughts?
Check the charts
market-get lost and leave steve alone. post something that adds to the conversation. another emotional dysfunctional retail investor. get some schooling son.
andrew -- read what a poster named "guy" wrote. I think he has it spot on:
I have to say that Cramer was right on the money with this one. Back at 85 he said to watch the 40-day 15% SMA Envelopes which was at the time 93, and for support at the 40-day SMA 5% Envelope. I thought he was #$%$ crazy and ended up selling at 87. A few days later FB hit 97.6 and crossed the SMA Envelope. The next day it peaked at 99.24. So he was right on the up trend. Today's low was also right in line with the 5% SMA Envelope at around 92.
We may trade sideways for a few days but I think we're right back up to the 15% SMA envelope again (like when we had our 2012 breakout) and that is around 101 right now (and will prob be at 105-ish in a few days).
Don't agree about AHs. A lot of traders will say $91.80 is all she got after hitting $90.60 AHs. Also the SMX 5% is $92. Think we've seen all we're going to see. FB will trade sideways until SMX 15% which takes us to $105 (it's at $101 now but shoul rise to $105-ish] Check out "guy's" post on "Cramer." He explains it well.