Facebook, the IPO of the year disappointed markets with a cold reception on Friday May 21th. Launched at USD 38 at 11 am, the stock briefly touched USD 43 before getting back to USD 38. On Monday 21th, the stock opens at USD 35.
One must say that the initial valorization of Facebook business did not really convinced analysts. With a price earnings ratio at 153x the estimates for 2012, the company is one of the most expensive on NASDAQ index. Facebook business keeps woolly and earnings per share are revised downward.
Technically the stock is falling down heavily. We observed a USD 10 decline between the highest price recorded during the IPO session and the lowest price recorder during the second session. The massive volumes observed on this security could be the proof that current stockholders are abandoning Facebook'share.
Our team advises investors to take a selling position on Facebook due to fundamentals elements and technical behavior. Our target is on the USD 25 area and a stop loss is engaged on USD 39.1, level of invalidation of our strategy.
The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.
Operates as a social networking service and websiteFacebook, Inc. engages in the development of social media applications for people to connect through mobile devices, personal computers, and other surfaces.It enables users to share opinions, ideas, photos, videos, and other activities online.Its...