It goes beyond that. Wall St. just loves what Zuck and FB is doing, if they didn't FB would have sold-off on the news. We are likely to rebound strongly on Thursday and Friday.
Absolutely right. Volume is slightly higher than normal indicates profit-taking. Still plenty of time for FB to recover by the end of the week. Zuck's plans are becoming clearer and Wall Street.
The problem is only the IMF can help us. Let's see, I don't trust China because of the way they keep their books. I don't trust U.S. because of their politicians. Japan has deflation, so basically we're left with the IMF.
Numbers don't lie and FB know it. It really depends on the audience for the press release. If it is investors then GAAP, simple as that.
that with good news around the corner...more momo-traders would be jumping on today. But people are cautious.
Also, before you establish a position, consider the viewpoint of the trader on the other side. There are quite a few major players that would be willing to write calls expiring in one week at $90. This is unexplored territory for FB. It may take a few weeks before FB can break $90 or alternatively, FB could hit $90 on Thursday morning and end the week at $86. FB has a history of large pullbacks.
Absolutely, that's why I compare FB with AMZN. AMZN also has their own set of rules Jeff Bezo can have a razor-thin profit margin and WS loves them. FB's competitive edge is Zuck is serious about connecting the world to FB which brings in advertising dollars. Bezos wants to drive out competitors with providing better service with lower prices.
I'm as bullish as you are but I've hedged my position and perhaps you should consider one also. A hedge does two things, it reduces the cost and it protects you in the even that FB only goes to $85 or $86 by the end of March.
I bought 10 contracts at 81.5 which probably cost me a little more in total. But the Delta of the position is much higher. This means that as FB goes up I will get more for my money. The way you can see this is at $85 and $86 your calls won't be making that much whereas mine will be close to doubling.
Just remember that FB is pretty careful about releasing news. The payments app. was released this week and popped FB. Now Zuck is expecting an equally big bang from the March 25-26 F8 conference in SF. My guess, is China approval information is liable to be released during the conference.
I'm more conservative, I'm leery of China companies. Although BABA is listed on NYEX, it is still basically a China company. There are two problems with a China company. First, they are linked to China and their policies. This is a problem because it's been just 60 or so years since they last nationalized a company. Also in China it is who you know, not what you know. So, in order for Jack Ma to get as far as he did, he must have bribed a number of people. As a matter of fact, at this time there is an ongoing investigation of BABA by the China government. This means Mr. Ma did not pay enough bribes.
Finally, there's the issue of Chinese accounting i.e. the books are never reliable.
A much more conservative investment is buy YHOO who is a major minority shareholder. The two companies have been trading like they are twins. Actually, Jack Ma and Jerry Yang are old friends.
I'm really talking about AMZN and FB maximizing their competitive edge. FB's competitive edge is that their all over internet. AMZN's competitive edge is service. Both companies are willing to spend money to maintain their edge.
You're off...this is not a normal FB end of the week rally, FB looking really strong here with high volume. People are looking for the next leg up. I would not be surprised if we hit 85 before the close today.