What's up guys, YoungShkreli in the building
There's been a lot in the news about Facebook lately with it being a FAANG stock dropping 20ish% in the last few days following the earnings report, so I thought I'd talk about it with you.
Can we all just talk about how even though Facebook has dropped 20% it hasn't even broken the major upward trendline? I wish every stock I ever owned went so high that a 20% retracement didn't even look remotely scary.
That brings me to my next point: what's scary isn't what's on the charts, it's what is not on the charts. What am I talking about? A real dip, one that actually breaks trend lines and has people calling for the death of Facebook.
If you look at the fundamentals, Facebook is trading at a pe of about 24 and has a market value of about 10x its current assets. This is by no means a call that Facebook is going down tomorrow, it just tells me that it would be completely reasonable for it to fall CONSIDERABLY more than what it has in the past few days.
SUMMARY:
If you are considering buying this dip based on technicals, I wouldn't recommend it: there will be other opportunities in the coming years. Remember: investing is a game that is played over a lifetime. Don't just jump into a stock because it drops a lot, employ more logic than that. Yes, your risk is less than it would've been at higher levels, but what are the odds that you actually bought the low? Very slim. I very well could be wrong and this could be the bottom, but that's not the point. The goal is to be able to invest and be able to write a 20 page essay explaining why you did so. There will be better opportunities guaranteed so play it safe if you are an INVESTOR.
Good luck bros,
Young Shkreli
There's been a lot in the news about Facebook lately with it being a FAANG stock dropping 20ish% in the last few days following the earnings report, so I thought I'd talk about it with you.
Can we all just talk about how even though Facebook has dropped 20% it hasn't even broken the major upward trendline? I wish every stock I ever owned went so high that a 20% retracement didn't even look remotely scary.
That brings me to my next point: what's scary isn't what's on the charts, it's what is not on the charts. What am I talking about? A real dip, one that actually breaks trend lines and has people calling for the death of Facebook.
If you look at the fundamentals, Facebook is trading at a pe of about 24 and has a market value of about 10x its current assets. This is by no means a call that Facebook is going down tomorrow, it just tells me that it would be completely reasonable for it to fall CONSIDERABLY more than what it has in the past few days.
SUMMARY:
If you are considering buying this dip based on technicals, I wouldn't recommend it: there will be other opportunities in the coming years. Remember: investing is a game that is played over a lifetime. Don't just jump into a stock because it drops a lot, employ more logic than that. Yes, your risk is less than it would've been at higher levels, but what are the odds that you actually bought the low? Very slim. I very well could be wrong and this could be the bottom, but that's not the point. The goal is to be able to invest and be able to write a 20 page essay explaining why you did so. There will be better opportunities guaranteed so play it safe if you are an INVESTOR.
Good luck bros,
Young Shkreli
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.