Some thoughts on Facebook (FB) after hours. (July 23, 2014)
I want to look at Facebook ( NASDAQ:FB ) here. They announced earnings after the bell; you can see where they are trading, up around 75.00, an all time high. Their profit and their revenues were off the charts, like really, really good; a great year on year growth, so I think ultimately the stock’s going to move higher. On a weekly chart it’s kind of been squeezing a little bit; I’ll go ahead and make a prediction, how’s this for predictions: it’s worth what you’re paying for it on this free video.
My bet is that the stock is going to get to $100.00 by the end of the year, how’s that? Why? Because it’s just trading that way and I think with the earnings report that they just gave, if you’re going to be in social media, and a lot of investors want to be, just buy what Janet Yellen says about the sector being overvalued, which shows her being every bit as intelligent as I thought she was. I can see this stock easily going to $100.00; by the way I’m not saying she’s not intelligent I think she knows a lot of things, they’re just the wrong things.
Why am I getting into this with Facebook ( NASDAQ:FB )? Here’s why, I was sitting here watching CNBC when Facebook’s ( NASDAQ:FB ) earnings came in and the numbers were eye popping, I think they beat EPS expectations by 30 percent or something like that. So I’m looking at the stock; we’ll look at it after hours here, so I’m looking at the stock and it traded down, guess when earnings were reported? Guess what, right about there. The stock traded down and I remember I was to lazy to get up and go up to my home office and buy some stock. I remember watching the shares drop, and I’m going, “I don’t get this, I think this is probably a pretty good buying opportunity on this dip, because this is one of those moves.”
I’ve mentioned this before, it’s like the first move is always wrong; when you see a company announce earnings and the stock really trades down a lot, so many times the stock will start snapping back up and ultimately move higher again. I mean I’ve seen that with Bidu ( NASDAQ:BIDU ), I’ve seen that with Apple ( NASDAQ:AAPL ), name a ticker that’s volatile and I’ve seen it. So as it turns out that was the case with Facebook ( NASDAQ:FB ) and I’m paying for my laziness; but you can see what happened, a couple of minutes the stock is down.
Here’s my point, if you’re looking at a company like this, you’re itching to buy it, it’s Facebook ( NASDAQ:FB ), this could be the same thing with Tesla ( NASDAQ:TSLA ), certainly with Apple ( NASDAQ:AAPL ), maybe an Amazon ( NASDAQ:AMZN ), I don’t know. But if you’re looking at a stock like this that’s high profile, the chart is not super overbought or super oversold, it’s just in a bullish trend, and the earnings are good, don’t just go with the first reaction; wait, watch, and a lot of times you’re going to find that this is a buying opportunity.
Look at what happened to Apple ( NASDAQ:AAPL ) yesterday, it did the same thing after hours. InteliChart only gives me after hours for one day, it’s not giving me yesterdays after hours trading, but I can tell you the stock moved lower after hours. I can tell you that because I bought some at 94.00, and I didn’t get a special deal. Once again, the earnings were great, there was nothing soft about them, the stock moved lower. I’m not an after hours guy, I think this is the first time that I’ve ever mentioned that maybe you might want to take advantage of some after hour moves to buy some stock.
If you see a stock that you want to own, report earnings, and the earnings are not bad, in fact they’re actually good, and the stock tanks, consider buying some. And if you are right to buy some after hours, it will only be a matter of minutes before you are rewarded, that’s what I’m saying; literally it will only be a minute or two, if you’re buying a stock of a company that announces really solid earnings, the stock has not been over bought to where it’s an obvious, just sell the news thing. A lot of times you’re going to get some great deals during after hours trading; just keep that in mind.
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