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Okay the numbers were bad but not that bad - EPS was in line and the revenue was down less that 1% - still The stock dropped 10% ($20) right away, but I expected that the numbers and the conference call would improve the price. I hoped it would come back 1/2-way.
BTW: a lot of analysts thought this would be a beat, whispers of EPS up $-06 and revenue higher than estimates.
But they gave the WORST conference call I have ever heard in my life - generally saying every possible problem (growing expenses, less time spent on the site, fewer visitors, etc) is just going to get worse for the next two years. The stock dropped another $30 share during the call. Aghhh! It dropped 24% all together - after hours.
Plus, this was the first time in years I broke my own very standard rule of never holding a position through the earnings announcement. I swear, I have sat out the last 20 conference calls for stocks that I watch because I would rather miss a gain than lose a bad call. Not this time, I decided to hold, and it was the literally worst conference call I have ever heard in my life.
You can look at the chart - call started at 5:00 EDT, stock at $200, ended at 6:00, stock at $165. I know most buy & hold investor hold through earnings calls all the time. Man. I thought this stock was going to beat, and maybe even knock it out of the park. Now I think it is dead in the water for a couple of years.
Based on what they said - I'll be lucky if we get a dead cat bounce to get out of this.
Well I bought a 3x levered nasdaq etf 2 hours before the close and will likely get clobbered tomorrow. First time I invested in the nasdaq. Beat that. I swear, sometimes it seems like someone is watching me waiting for me to make a trade so they can send a stock crashing. Now I feel like an idiot with stocks hitting all time highs and buying.
Well I bought a 3x levered nasdaq etf 2 hours before the close and will likely get clobbered tomorrow. First time I invested in the nasdaq. Beat that. I swear, sometimes it seems like someone is watching me waiting for me to make a trade so they can send a stock crashing. Now I feel like an idiot with stocks hitting all time highs and buying.
TQQQ - yeah, done $3.10 right now. But if Netflix is any indication its possible a lot of people will buy the dip tomorrow. Just watch carefully, because if it start to go up it could turn around on a moments notice and go south fast.
Don't feel bad - I get the same creepy feeling all the time - that if something bad is going to happen it will be the one time I choose to try it.
Like I said, I NEVER hold over earnings announcements, but this time I did - down $24%. I have had a ton of things like that happen to me in the last year.
it's already at 180 now, could hit 190-195 tomorrow
Is it? I bought some shares at 170, I should have held on. I just read an article that said Facebook recovers somewhat from a downturn from a bad earnings report 70% of the time (7 out of 10 bad quarters, the next day it recovered many of its losses).
The problem here is if analysts come out right away and downgrade it, then the buyback might not happen. No one downgraded Netflix (as I recall). But even though the FaceBook earnings report was pretty much "in-line" and the selloff was arguably overdone - during the call they said to expect more quarters like this - they did not say it was a one-time event.
frankly I was just stunned at what happened to this, huge overreaction and panic IMO and makes no sense to me why it dropped so much so fast, I think it will recover as the company has good fundamentals. From what I am reading they have quite a lot of untapped ways to make money... well, let us see tomorrow what happens, going to be an interesting day! Still a lot of bullish sentiment on stocktwits and original price targets for this were as high as 275 LOL!
Growth stock transitioning to a value stock? Maybe the street thinks they won't keep up their revenue or EPS growth. A buy here? I probably wouldnt but to each their own. Need to do more DD. I'm at work on my phone so I'm not doing it tonight.
$7 in earnings is a PE of 25 after the plunge but they probably won't be able to do $1.70 per share every quarter. Nice balance sheet. They are swimming in cash with very little debt. Hmm..... On second thought....
I just placed an order for FB at limit $150. If it takes, good investment. If not, NBD.
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