The stock was up over $150 last week and that’s if you caught it when it made all-time highs above $30. Of course, we all know that $FB fell much lower just before making what has become the first in a series of all-time highs. That drop in $FB took it below its IPO price. In the good old days of 2013, Facebook gave FB bulls the green light as it proved that it could, and will, monetize its mobile native app. And with that, $FB exploded. It’s been an incredible run since those 2013 highs. If you are like me, you grew up in social media on Twitter. Though I resisted, once I got on Facebook, I got it. And I get it. I spend such an inordinate amount of time on Facebook that I do not allow its notifications to light up my phone. Or send me email, even though those always seem to leak through. So $FB has made a lot of people a lot of money.
This rally has been so great because Facebook has been very good for $FB. And we took some profits in 2017 as a result. But this news about Cambridge Analytics is something a little more sinister. While $FB doesn’t give a fuck about you, we still do hold Facebook to a much higher standard of civility and responsibility. Because I use Facebook. A great deal. We all do. I don’t mind them have my data as long as they keep it safe. Make some money for your efforts, sure, but don’t sell your soul. That’s what this trump-russia-facebook triangle feels like. But maybe Facebook had no idea they were selling data to foreign spies. But if it comes out that they did, the markets may not take that news so lightly and $FB can sell off.
My client told me that we may not know if prices fall until the release of the next financial report. But the price action told us far sooner that that. This was the chart yesterday (Monday close).
$FB has opened today below $168. The Fibs are coming up next. To be sure, markets will let Facebook know that it has a responsibility to be responsible. Which, of course, is very subjective. There are ebbs and flows to every market. Trade what you see.