4 ms·

Can anyone explain why they are down 7%?

by unreal37 14y ago

LargeWu 14y ago
I think a better question is why are they only down 7%
- astrodust 14y ago
  As Facebook stands, they're doing okay. The stock might be over-valued, but that's the environment we're in now. To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social networks, something they don't seen prepared to do, or diversify.
  - georgemcbay 14y ago
    "To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social network" Which social network(s) are they supposed to acquire for growth? While there are certainly other social networks out there, I sincerely doubt there are any that don't have a huge user overlap with Facebook.
    - astrodust 14y ago
      Facebook seems to have less traction in markets like China and Japan when compared with the market share of the local networks. Facebook could do worse than "Go Yahoo!" and start acquiring properties simply for their userbases. I'm sure QQ is expensive, but it's not out of reach for a company that's public. Issue enough shares and anything's possible...if you can get shareholder approval.
gamble 14y ago
Facebook options trading began today.
TomGullen 14y ago
Supply and demand is the answer, although probably not the one you are looking for! The WSJ reported the options market has just opened for FB stocks. A lot of people seem to be very bearish about FB so a lot of short action could significantly impact the demand of FB stock. I'm an amateur at this though, and would love someone to correct me if I'm completely off here :)
- borism 14y ago
  Short selling doesn't lower demand for stock! To short sell a stock you need to borrow it first. That actually creates additional demand!
kirpekar 14y ago
Random Walk
planetguy 14y ago
If I could explain why it's down 7% today then I could also explain why it's gonna be up/down n% tomorrow, and m% the next day. Unfortunately I'm not quite that smart.
- unreal37 14y ago
  I guess I meant why so much. I understand that on any particular day, a stock can be up or down by some small percentage on no news. But it's now down 10% for the day. I'll buy the "options trading, short sellers" theory. Thanks!

Can anyone explain why they are down 7%?

LargeWu 14y ago

I think a better question is why are they only down 7%

astrodust 14y ago
As Facebook stands, they're doing okay. The stock might be over-valued, but that's the environment we're in now. To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social networks, something they don't seen prepared to do, or diversify.
- georgemcbay 14y ago
  "To get that stock going up they'll have to increase their market share and the only way to do that is to start acquiring big social network" Which social network(s) are they supposed to acquire for growth? While there are certainly other social networks out there, I sincerely doubt there are any that don't have a huge user overlap with Facebook.
  - astrodust 14y ago
    Facebook seems to have less traction in markets like China and Japan when compared with the market share of the local networks. Facebook could do worse than "Go Yahoo!" and start acquiring properties simply for their userbases. I'm sure QQ is expensive, but it's not out of reach for a company that's public. Issue enough shares and anything's possible...if you can get shareholder approval.

gamble 14y ago

Facebook options trading began today.

TomGullen 14y ago

Supply and demand is the answer, although probably not the one you are looking for! The WSJ reported the options market has just opened for FB stocks. A lot of people seem to be very bearish about FB so a lot of short action could significantly impact the demand of FB stock. I'm an amateur at this though, and would love someone to correct me if I'm completely off here :)

borism 14y ago
Short selling doesn't lower demand for stock! To short sell a stock you need to borrow it first. That actually creates additional demand!

kirpekar 14y ago

Random Walk

planetguy 14y ago

If I could explain why it's down 7% today then I could also explain why it's gonna be up/down n% tomorrow, and m% the next day. Unfortunately I'm not quite that smart.

unreal37 14y ago
I guess I meant why so much. I understand that on any particular day, a stock can be up or down by some small percentage on no news. But it's now down 10% for the day. I'll buy the "options trading, short sellers" theory. Thanks!