As investors who frequent FullyInformed.com know, Facebook Stock has been my speculative trade for a couple of years. While some investors may disagree that Facebook Stock is not very speculative, I believe it is and with it trading at 82.7 times price to earnings and 56.6 times price to cash flow I think the stock is highly speculative.
Facebook Stock In A Downturn
Should markets decide to correct this summer as many analysts believe, Facebook Stock could easily take a tumble and wipe out support at the $75 level. If that happens it would be easy for the stock to fall back to the $70 level. Last summer is was trading between $62 to $68 before shooting higher in August of last year. Since then the stock has traded around the $75 level until this year when it seems to have set a new trading range which includes the $80 valuation.
Earnings and Revenue
Last summer the revenue numbers for July were $2.9 billion. July 21st is the expected earnings release for the latest quarter. Revenue for that quarter is ………….. the rest of this article is for FullyInformed USA Members.
For FullyInformed USA members, here is the outline of the trade entered and my outlook and concerns going forward for Facebook Stock.
Trade Alert and Trade Ideas In Facebook Stock (FB) for June 19 2015
To read this Facebook Stock trade alert 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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