With such lofty valuation even after a heavy haircut from the last 2 weeks, I think FB is still over-price giving current economic environment. FB already announced reduced revenues forecast right before IPO; now if we are heading toward another recession (or is it deflation?), where do you think the advertising dollars are going to go?
Google advertising business model is far superior than FB ’cause people who searched for items have high probability of buying the items they are searching for. Meanwhile, ad popping on FB while people just wanted to chat with their buddies are annoying, especially when those ad is designed with attention grasping “LOOK AT ME!” graphic artworks.
With such poor fundamental support (my opinion), I don’t see any counter-force movement to stop this waterfall price-action any time soon.
Therefore, albeit a bit late, I’m shorting FB by buying the July 28 Put options.
In case I’m wrong (which happen often), I will close my put option if price action exceeds yesterday high.