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After rallying yesterday, Facebook (FB -1.5%) is selling off ahead of tomorrow's 773M-share...

After rallying yesterday, Facebook (FB -1.5%) is selling off ahead of tomorrow's 773M-share lockup expiration. The decline comes as an NYT column notes Facebook is dealing with a rising tide of fake profiles and pages, created either for marketing or privacy purposes. Meanwhile, Mark Cuban is threatening to yank the Dallas Mavericks' Facebook page over the steep fees Facebook charges for Promoted Posts, as well as algorithm changes (supposedly to fight spam) that often de-emphasize regular posts from brands.
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Comments (17)
  • dieuwer
    , contributor
    Comments (2421) | Send Message
     
    Can you imagine, CNN asking their reporters to send them news items and content for fee, but charge for it when someone wants to see it? There would be instant outrage. Well guess what, facebook is behaving exactly that way.
    13 Nov 2012, 10:35 PM Reply Like
  • Ken311
    , contributor
    Comments (92) | Send Message
     
    Facebook - Showing us how a great idea and a great business are two different things
    13 Nov 2012, 11:09 PM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    and the great circus begins.
    sell 'em now boys, or hold your tongue.
    check out the FB page here on SA for more info
    but the fire has begun.

     

    short in a big way on Zuck.
    13 Nov 2012, 11:57 PM Reply Like
  • TangoOscar
    , contributor
    Comments (377) | Send Message
     
    I'm guessing the sell off starts tomorrow and goes until the end of the month.
    14 Nov 2012, 12:20 AM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    i'd maybe look at picking some up @ $10 and holding them for a few years. just a speculative taste. stock is *still* overvalued and crazy diluted. it's toast thru '13 methinks, but my hunch still tells me that 5 years from now this could be a cash cow if (IFF!!) ad revenue is ever figured out.

     

    a massively hyped IPO cratering? who knew?!? only thing you can bank on here is human nature.
    14 Nov 2012, 03:48 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    This is total BS....shares green at the moment. Wall Street scam continues.
    14 Nov 2012, 09:35 AM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    its a pump and dump - some big players no doubt.
    i'm stayin put.
    14 Nov 2012, 10:01 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    I bought December 18 puts yesterday.

     

    My guess is someone is pumping as employees are selling into this rally.
    14 Nov 2012, 10:18 AM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    theres no way someone could cover this many shares. just do the math
    even if only 20% sell, based on $20, to cover thats roughly 3 billion dollars, and its not even the last lockup.
    At a 10% price spike off open - I think this is some Wall Street scam to shake off the shorts and dump it.
    14 Nov 2012, 10:43 AM Reply Like
  • six-oh
    , contributor
    Comments (609) | Send Message
     
    220% of average daily share volume and the stock is up >7%... Have to say that some deep pockets are propping this price up. It won't be enough and it can't last. Look for the price to fall off over the next several trading days. There's not enough money to convince the market that this stock is worth 20 bucks a share.
    14 Nov 2012, 11:18 AM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    Possibly MS, the lead underwriter, has their trading desk on this one (my guess) to avoid reputational harm. Good idea, bad business for now.
    14 Nov 2012, 12:03 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    This is a great opportunity to buy puts!
    14 Nov 2012, 12:09 PM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    I went into every PUT I own ( DEC/JAN/FEB/MARCH ) and just doubled them all.
    Cut my cost basis in half.
    I just checked the option chain for Nov14 12am PST

     

    P/E is 124.7 !!!!!!!!!!
    14 Nov 2012, 02:56 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    I wish I had more cash laying around lol.
    14 Nov 2012, 03:08 PM Reply Like
  • kwm3
    , contributor
    Comments (2453) | Send Message
     
    Good one. How about the calls, are they too cheap to be worth the selling risk? Seems like everyone is buying the puts, meaning they're likely expensive. I like the call credit transaction, usually.
    14 Nov 2012, 03:51 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1690) | Send Message
     
    Put prices are more affected by how much the underlying stock moves than by "a lot of people buying."
    14 Nov 2012, 04:28 PM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    I'd rather pay the extra cash and be in control. With the volatility, unless you want to own FB - I'd buy puts instead of selling calls.
    14 Nov 2012, 04:21 PM Reply Like
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