funny, was just wondering same ..... doubling down does work, most of the time. This will be a ugly learning experience for somebody.
IMHO, even $10. is rich for FB. The company is platform dependent. Mobile can't handle the complexity of everything FB users want to see on a page, plus the clutter of advertising. There is simply a limit as to what the users of any site will put up with on a small screen. I feel very bad for the average Joe who bought into the B.S. But we've all taken our licks at one time or another.
Good question, because even if you like something price must confirm your directional analysis, and FB has been nothing but a falling knife.
I suspect FB will see below 10 within the next 6 months. FB current valuation is too high given declining revenue growth and no new subscrbers in its primary market. The fact that FB shows Cartier ads to subscribers in Bhutan shows it has no visibility for revenue growth. FB talks about monetizing mobile, but I don't see how. Goog owns Motorola cellular patents and has access to a good chunk of mobile computing with Android.
Having actively traded equities for past 15 years, it's my extremely strong opinion that anyone buying an IPO within first month of being publicly traded is making a colossal mistake. A pure crap shoot, no edge. As in...no chart history to find pivot points, etc. Speaking from a perspective that doesn't include day trading.
best investment 2013... buy FB put striked at 5 dollars..march 13.. for .05 cents.. hahah.. or if your a real gambler.. buy FB Call striked at 40 march 13 for .15 cents.. or the straddle for 6.70 striked at 20 this straddle is implying like a 35 percent move.. i personally think if it moves only 6 bucks.. it will be down.. if i was to speculate.. the insiders will keep letting it drift down with occasional spikes to get hope going... i believe the money has already been made by the syndicate.. this is so overvalued.. these fuckers own this stock at 1 dollar some of them... historically speaking ipo's should be shorted not bought. i'd love to hear what you would do... if you absolutely HAD to make a trade in FACEBOOK.... would you butterfly it on the short term or long term.. condor it.. credit spread it... would you ratio backspread it with puts or calls.. or even both? .. would you synthetic short it..