2 ms·
Looking at other tech stocks this seems like more of a broader downturn today. Twitter was down 7%, Zynga was down 4%, Amazon was down 3%. Correlation ≠ causati
by ceph_ 13y ago
Looking at other tech stocks this seems like more of a broader downturn today. Twitter was down 7%, Zynga was down 4%, Amazon was down 3%. Correlation ≠ causation. I'm not buying the drop is from the Oculus buyout.
- deleted 13y ago[deleted]
- reqres 13y agoI think you can get a rough sense of whether this is true by using Beta (http://en.wikipedia.org/wiki/Beta_(finance) http://en.wikipedia.org/wiki/Beta_(finance)) - Beta represents the riskiness of the stock relative to the market as a whole After a quick google it seems Facebook's beta is ~2. So a NASDAQ fall of <3.5% is an indication that something other than a general downturn impacted Facebook's price Please correct me if my understanding is wrong
- hacknat 13y agoIt is, other stocks with low betas had a bad day as well. Some of it might be the Oculus, but most of it probably isn't
- brisance 13y agoThe first paragraph is correct but the second is not quite right, and is a common misconception. Beta is a lagging indicator and by itself cannot explain a stock's movement or lack thereof. There are much better guides to stock volatility such as the put-call ratio, implied volatility of options or general market volatility as measured by VIX.