Thursday, 31 October 2013

FB - wild swings on good earnings

With good earnings, Facebook (FB) soared around 15% in Wednesday AH, to the $56/57s, but opened a rather bizarre 4% lower, flooring at $46.50. There was a fierce push higher to $52, with the stock settling +2.5% @ $50.24. Broader trend remains very much to the upside, $ year end.

FB, daily

FB, 5min


It has to be said, Q3 earnings were indeed a lot better than just about anyone had expected, and it was no surprise to see the stock soar in AH to the 56/57s.

The reversal that we saw yesterday in AH is probably just the usual nonsense that most of the momo stocks see from time to time.

The fact FB opened -4%, but still managed to close +2.5%, was again testament to the underlying upside pressure.

The $60s look very likely before year end, not least if the main market is trading in the sp'1800s.