02-03-2022, 07:44 AM
(02-02-2022, 09:03 PM)fenders53 Wrote:(02-02-2022, 08:16 PM)Kerim Wrote: I think it is a grotesque over-reaction. Enough so that I just made my first after-hours purchase ever to increase my FB holdings considerably. Anyone who is selling because FB *only* increased EPS by 36 percent in 2021 is out of their mind. Slowing growth matters a lot with a stratospheric P/E, which this cash generating juggernaut does not suffer from.I think it will be awhile before it sees $300 again, but in the end it's very undervalued at $250. It will be fine whenever tech is fine again. What I want to know is who starts dumping shares in VERY profitable companies at 20% off, one minute after the press release? My hunch is an institution throws up 10K shares at a ridiculously low ASK and starts the panic. We know what they do after that. Same thing happened to NFLX. They aren't going broke either, but had a much higher valuation than FB.
Not making any predictions about time frame -- my holding period is generally measured in decades. (But the way things have been moving lately, it would not surprise me a bit if it was back closer to $300 by the open tomorrow, as people come to their senses. (Or maybe it will be under $200 -- who the hell knows anymore. But I'll be sleeping fine tonight.))
I think it is good that Apple's privacy protections are costimng FB money.