Facebook (FB +1.2%) is rallying ahead of today's Q3 report - short-covering is likely a big...


Facebook (FB +1.2%) is rallying ahead of today's Q3 report - short-covering is likely a big factor (16.5% of the float was shorted as of Sep. 28). The bull argument: shares are down 48% from the IPO and 27% since the Q2 report; monthly users just topped 1B; and Facebook is pulling out all the stops to improve monetization, with some success. The bear argument: U.S. PC activity is plunging thanks to the mobile shift (this includes gaming activity), shares still carry lofty forward P/Es, and buyers could be cautious ahead of a huge Nov. 14 lockup expiration.

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Comments (6)
  • ManoLive
    , contributor
    Comments (450) | Send Message
     
    Figures. I'm short FB and long aapl.
    23 Oct 2012, 11:41 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    The PUMP right before the lockup DUMP!
    23 Oct 2012, 11:42 AM Reply Like
  • ungera
    , contributor
    Comment (1) | Send Message
     
    Basic value analysis suggested an IPO price of about $14 before all the hysteria. Little has changed.

     

    Huge # of shares coming free mid November. Why buy now?
    23 Oct 2012, 01:01 PM Reply Like
  • rephinbar
    , contributor
    Comments (212) | Send Message
     
    Why buy at all? How about SHORT now?
    23 Oct 2012, 03:40 PM Reply Like
  • JoeMarfice
    , contributor
    Comments (130) | Send Message
     
    We'll go down together, bro. I'm short FB.
    23 Oct 2012, 06:16 PM Reply Like
  • jchristanthio
    , contributor
    Comments (4) | Send Message
     
    great minds think alike. hope the charts think too.
    23 Oct 2012, 02:55 PM Reply Like
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