Following the Frances Haugen whistleblower information, Fb inventory plummeted from a excessive of 381 to to as little as 325 in only a week. Based mostly on the long run, and in comparison with earlier flash dips, this isn’t as cataclysmic as it will seem. In reality, there was a extra vital drop from 216 – 139 throughout February – March simply final yr, however the present one ranks because the second most devastating in Fb historical past.
ANALYSIS: There’s little and spotty assist the place the worth resides, with a free-fall looming all the way down to a minimum of 278 – 261. Bullish sentiment stays sturdy, however long run bullish development is simply simply starting to flatten. It is potential that the market as a complete / inflation hold the worth artificially rising, however essentially Fb is a deeply flawed funding automobile.
Edit: It is attention-grabbing to notice that there are giant spikes of bearish quantity instantly earlier than main value dips, suggesting selloffs in anticipation of main occasions, which is a transparent sign of insider buying and selling.