Facebook Stock Longs are Haunted by This Risk
By Markos N. Kaminis:
Facebook (NYSE: FB) shares are up another 1.8% today on the company’s strong first quarter earnings report. However, Facebook longs are haunted by a particular and disturbing risk. It’s a risk realized by similar business plans including the likes of AOL (NYSE: AOL), MySpace and other now long forgotten internet and technology plays. Don’t get me wrong; I’ve favored FB shares since the days when post-IPO punditry fell away and left the stock trading around $20. Recently, I salivated as FB drifted on macro issues that tanked the NASDAQ (Nasdaq: QQQ). I then penned Why Facebook is Falling and When to Buy it. I’ve advised Mark Zuckerberg indirectly through pen when his tech-oriented team failed to understand what Wall Street needed to see from it. It was a period where poor management from similar types drove the founder of Groupon (Nasdaq: GRPN) away after the great destruction of value in that stock. Today, Facebook and Google (Nasdaq: GOOG) are working hard to expand internet usage globally so as to maximize their opportunity. And Facebook is working hard to stay ahead of trends among internet users. Its acquisitions of Instagram and Oculus are examples of that, and proof that Zuck is paying attention. Facebook holders should likewise take note of the risk that should haunt the stock for the rest of its days. I’ve covered it in detail in my report: Watch for this Fly in Facebook’s Ointment.
Facebook (NYSE: FB) shares are up another 1.8% today on the company’s strong first quarter earnings report. However, Facebook longs are haunted by a particular and disturbing risk. It’s a risk realized by similar business plans including the likes of AOL (NYSE: AOL), MySpace and other now long forgotten internet and technology plays. Don’t get me wrong; I’ve favored FB shares since the days when post-IPO punditry fell away and left the stock trading around $20. Recently, I salivated as FB drifted on macro issues that tanked the NASDAQ (Nasdaq: QQQ). I then penned Why Facebook is Falling and When to Buy it. I’ve advised Mark Zuckerberg indirectly through pen when his tech-oriented team failed to understand what Wall Street needed to see from it. It was a period where poor management from similar types drove the founder of Groupon (Nasdaq: GRPN) away after the great destruction of value in that stock. Today, Facebook and Google (Nasdaq: GOOG) are working hard to expand internet usage globally so as to maximize their opportunity. And Facebook is working hard to stay ahead of trends among internet users. Its acquisitions of Instagram and Oculus are examples of that, and proof that Zuck is paying attention. Facebook holders should likewise take note of the risk that should haunt the stock for the rest of its days. I’ve covered it in detail in my report: Watch for this Fly in Facebook’s Ointment.
Labels: FB, Stocks, Stocks-2014-Q2
posted by The Greek | 12:13 PM
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