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Facebook (FB +2.2%) is rallying today even though Oppenheimer lowered its target to $27 from...

Facebook (FB +2.2%) is rallying today even though Oppenheimer lowered its target to $27 from $41, citing mobile concerns. A CNBC appearance by COO Sheryl Sandberg could be helping. Sandberg touted the effectiveness of Facebook's Promoted Posts product, as well as studies indicating healthy ROIs for ad campaigns. Regarding the company's display ad network plans, she claimed Facebook's ability to target narrow demographic groups would help it stand out.
Comments (7)
  • rephinbar
    , contributor
    Comments (228) | Send Message
     
    I find it truly amazing that the market is falling for this obvious and intentfull "pump" by the company and it's execs, knowing full well they're pre-empting a sharp share price decline as a result of below-expectations upcoming earnings and major sell off from expiry lock up.
    1 Oct 2012, 12:36 PM Reply Like
  • Chris Lau
    , contributor
    Comments (1572) | Send Message
     
    One can only hope that 10,657 SA members don't fall for this. The "bounce" reminds me of last year's (ZNGA) stock bounce. Once all the insiders sold out, shares were left close to worthless.

     

    3 words: Pump. And. Dump.
    1 Oct 2012, 12:38 PM Reply Like
  • timetosave
    , contributor
    Comments (35) | Send Message
     
    My browser disables all ads from pages I view. It only takes a couple of click to install the browser extension to do this... How does Facebook plan to target the 'competent, annoyed with ad revenue model' demographic?
    1 Oct 2012, 12:55 PM Reply Like
  • wallstjoe
    , contributor
    Comments (26) | Send Message
     
    Sandberg is another self promoter, annoying. Still short!
    1 Oct 2012, 01:24 PM Reply Like
  • raviunnam
    , contributor
    Comments (178) | Send Message
     
    If i were an insider with a lot of shares and have faith in the long term prospects of FB, i would sell into the rally and buy back for a fraction of the proceeds and retire with the rest.
    We can why all the BIGWIGS try talking us into the HUGE POTENTIAL for FB. We know that FB has huge potential . That is the reason a few of us paid $44 in pre-market bubble for the shares.
    Now is the time for FB to prove with solid numbers and not just talk of future potential before offloading a few more billion shares.
    1 Oct 2012, 02:17 PM Reply Like
  • raviunnam
    , contributor
    Comments (178) | Send Message
     
    If i were an insider, i would sell into this rally and buy back for a fraction in May 2013 . The rest ... i will spend on retirement.
    1 Oct 2012, 02:22 PM Reply Like
  • Theodor Trampe
    , contributor
    Comments (25) | Send Message
     
    I think of Facebook as a billboard where you can pick who you show your product to. In contrast, search advertising targets people who are actively seeking out products. It's harder to value Facebook ads because it's more difficult to see the conversion rate that impression based advertising does. So although you see a lower click rate on Facebook ads, more people will know your product exists which is never a bad thing.

     

    The problem lies in the fact that Facebook can't prove how much value this creates. Therefore search advertising will continue to command a price premium as it's much more similar to traditional advertising.

     

    So stay away from FB.
    1 Oct 2012, 03:27 PM Reply Like
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