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Follow on Google News | Buy Facebook On Lockup Expiration DipsWhile investors keep losing faith in Facebook (FB), we believe the stock has a higher potential for upside.
By: Qineqt The biggest catalysts for Facebook, for the time being, are the expiration dates of its lockups. Improved Q2 2012 results were not enough to warrant investor confidence in a future for Facebook. The company reported revenues of $1.18 billion and EBIT of $515 million. By the end of August, the stock price had already fallen more than 40% from its pre-earnings announcement value. As the number of tradable shares increased, chances remain of FB slumping further. We believe that the recent improvement in mobile advertisement has significantly improved long-term prospects for consumers. The stock is currently priced right, but there is the potential of a further decrease due to lockup expiration. Due to our belief in FB's long-term growth, we recommend that any post-lockup expiration dips will be an ideal entry point into the stock. We are bullish on FB's long-term growth prospects, but are recommending a hold position due to the expected dips on lockup expirations. Source URL: http://seekingalpha.com/ End
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