Facebook Stock has large short positions which considering the high price to earnings multiple of 96.7 is understandable. Cash flow is sitting at $1.45 per share with earnings around 95 cents. But it is the leader in social media and there is no other company that has come close to what Facebook has accomplished. With 1.5 billion users the potential for future revenues is truly staggering and that is what keeps the stock at such a high multiple.
Facebook Stock 5 Day Chart
Looking at the 5 day chart for last week you can see that Tuesday marked the low for the week at $85.72. Facebook Stock on Wednesday shot back above the $87.50 valuation for both Wednesday and Thursday. Friday, the stock dipped with the rest of the market and a number of analysts discussed the stock falling back below $87.50. Instead the stock moved higher and closed almost unchanged from Monday. For the week though, Facebook Stock was under heavy distribution as investors bailed out of the stock for the first four days last week.
Facebook Stock 5 days to Oct 2 2015
For the week Facebook Stock was once again volatile. It is this volatility that is assisting my profits and why I am continuing to use Facebook Stock as my speculative trade throughout 2015……………….the rest of this article is for FullyInformed USA Members.
Trade Ideas for Facebook Stock (FB) For Oct 5 2015
To read this Facebook Stock trade update and ideas, FullyInformed USA Members can login directly through this link or they can sign in to the full USA members site here. Non-members can join here.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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