Facebook Legal Troubles Far From Over
On Friday Facebook hit an all time high of over $203 a share, and all it took to run up the stock 5% or $11 in two days was an analyst upgrade, but that is what you get in bubble stocks in a bubble market. Right as Facebook was about to break ket technical support around $192 a share on more troubles regarding privacy disclosure issues, an analyst came out with this upgrade out of his ass propelling the stock to a new high. The timing of the analyst call seems highly questionable as Facebook was at this level a couple of weeks ago, and then new information regarding the FBI, FTC and the SEC joining the Justice Department`s investigation into Facebook`s Cambridge Analytica disclosures sent the stock reeling, and on the verge of breaking down hard below the $192 support level, before being magically revived by this analyst call. You think somebody was stuck this stock at all time highs and needed an analyst upgrade to have some other bagholders to sell into going into earnings? That is my best guess! This is Wall Street we are talking about, and things usually don`t just magically appear out of thin air!
So the analysts always talk about the upside target, but remember when they were pumping up Valeant stock at over $250 a share, did analysts ever tell you in the midst of that pump job, that the downside risk was that the stock would be below $20 a share in less than a year? Well my first downside target is $150 a share, then $100 a share as the major decade long headwind which we will call the QE Central Bank Bubble Valuations Era comes crashing down along with ridiculous Tech Bubble 2000 like Valuations.
The Forbes List Curse
When people start talking about Mark Zuckerberg being the 3rd Richest Person in the World and passing up Warren Buffett in a quarter when you are brought in front of Congress to testify for wrongdoing, you know that is your clue to short a stock, the end is near, this bubble has left the building. We have gone completely off the tracks, if ever there was a quarter to short Facebook going into earnings it is this quarter! Good Luck Facebook bagholders going into earnings, don`t get nervous I am sure pigs never get slaughtered on Wall Street and Earnings Never Disappoint!
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
