(Note* Facebook didn’t lose $120 Billion in one day…the shareholders lost $120 Billion.)
Since last Thursday, I’ve had numerous email readers ask me what I thought about Facebook’s 23% bludgeoning in the last few days.
Before I tell you, I want to point out that at 3:59 PM last Wednesday, some mysterious “Big Hand” traders dumped a massive amount of FB stock when it hit an all-time high of $218.54.
At 4:15 the after-market trading began with FB down OVER 20 POINTS.
So, for those enquiring minds who want to know, let me refer you to a portion of what we wrote in our April newsletter about Facebook:
Back to Business As Usual…or Maybe Not
For the time being the general consensus is that Facebook will be just fine over the long haul.
They may or may not end up paying huge sums of money in penalties. If they do that’s when the Congress critters proudly claim another victory over the evil business world. (What a joke).
However, the markets have a way of leveling the playing field regardless of how much a company is loved by the public.
Facebooks stock may rebound from here. However, you’ll most likely see a collective distancing of FB from institutional players. (Most likely their CIA backers will jump first). Zuck’s comment about “responsibility for content” is like a death sentence. He is no longer necessary to those who backed him.
If you own Facebook stock, you should consider selling some ahead of the big boyz.
Instead of selling Facebook and walking away with billions, Mark Zuckerberg now owns the Sears of social media.
Pride goeth before destruction, and an haughty spirit beforeafall.
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