Efficient Market Hypothesis - Inefficient market
Yesterday FaceBook plunged 22% in early U.S. trading on the back of poor earnings results, putting it on track to erase about $195 billion. That’s the biggest collapse in market value for any U.S. company.
This isn't the first time FaceBook has set this record. In July 2018, the company's stock plunged 19% after a slowdown in user growth, translating to a $120 billion decline in market capitalization. As you can see from the last time Facebook experienced a decline such as the one we saw yesterday, the stock recovered and exceeded all time highs.
Price could head down to support around the $200 level. However, I have confidence in taking a position here playing for a bounce and holding long term if an upward trend forms. I believe there is a high probability that the market has overacted thus causing an inefficiency and there will be a reversion back to a fair value above current levels.
Mark has big plans for the meta verse and at some point this company will drive momentum back to all time highs.
My trade size and risk will allow a visit to the $200 range.
Good Luck (:
Yesterday FaceBook plunged 22% in early U.S. trading on the back of poor earnings results, putting it on track to erase about $195 billion. That’s the biggest collapse in market value for any U.S. company.
This isn't the first time FaceBook has set this record. In July 2018, the company's stock plunged 19% after a slowdown in user growth, translating to a $120 billion decline in market capitalization. As you can see from the last time Facebook experienced a decline such as the one we saw yesterday, the stock recovered and exceeded all time highs.
Price could head down to support around the $200 level. However, I have confidence in taking a position here playing for a bounce and holding long term if an upward trend forms. I believe there is a high probability that the market has overacted thus causing an inefficiency and there will be a reversion back to a fair value above current levels.
Mark has big plans for the meta verse and at some point this company will drive momentum back to all time highs.
My trade size and risk will allow a visit to the $200 range.
Good Luck (: