Tag Archives: FB

zuckerberg pledge

FB Zuckerberg Donates 99 Percent of Shares To Charity to Celebrate Birth of Daughter

Facebook’s Mark Zuckerberg (who needs no further introduction) and his wife Priscilla are celebrating the birth of their first child ( a girl named Max) by announcing that he and his wife will move 99% of their shares in Facebook (NYSE:FB) to a charitable trust. For those without a calculator, that’s $45bil of net worth that will go to a trust.

Wow. OK…a big announcement that makes CNBC wonks slather with commentary..but there’s lots of small print in the plan…this is a long-term allocation to the newly-created trust. It will be funded in incremental stages, etc etc.

Here’s a post post summary courtesy of the front page of the NY Times

In Your Face: Option Trading Contrarian Called $FB Move re: post-lockup activity

     Courtesy of John Carney/CNBC

MarketsMuse Editor Note: article below was published Tuesday Nov 13 at 6pm, in advance of $FB lock-up  expiration.

Eight hundred million shares of Facebookare set to “flood” the market Wednesday, as the company’s biggest post-IPO lockup expires.

This has many investors fearful that stock sales from employees could push the stock, which has lost nearly half its value since the IPO, even lower. Some are calling it the “Facebook fiscal cliff.” (Read more: Facebook Drops as Employees Sell Shares)

But not everyone sees this as a reason to sell. In fact, some contrarians think it will be an excellent time to buy Facebook.

Matt Gohd, a senior managing director and options strategist at WallachBeth Capital, thinks Facebook [FB  21.5592    1.6992  (+8.56%)   ] stock could very likely go up in the aftermath of the lockup expiration.

“I think it could go up tomorrow, it will be up next week, and it will be up at the end of the month,” Gohd said.

Gohd’s thesis is pure contrarianism. With so many traders positioning themselves for a downward move in Facebook stock, the stock price may have already incorporated the coming sales. If you believe markets are at all efficient, certainly they should have priced in the shares coming out of lockup.

“The end of the lockup is the worst-kept surprise in U.S. history,” Gohd says.

When the first lockup of Facebook shares was lifted on August 16, shares fell 6.3 percent. But if you bought shares at the closing price on August 16 and held them for a month, you saw an 8.3 percent gain.

I should point out that Gohd pointed out in early August that the lockup expiration could be bullish for the stock

Facebook shares were flat the first trading day following the lockup expiration on October 15. If you bought at the closing price that day, you’ve seen a 2.18 percent gain to date. (And you were up by a nudge more than 19 percent on October 24.) Continue reading

Social Media ETF Index Weights Facebook (FB) at 8.8%


The Solactive Social Media Index, the index tracked by the Global X Social Media Index ETF (Nasdaq: SOCL), has allocated 8.8% of its weight to Facebook (Nasdaq: FB), according to Global X. The Global X Social Media Index ETF, the lone ETF devoted exclusively to the burgeoning social media ETF, has been widely viewed as the first ETF destination for Facebook, the largest social media company.

It was expected that the index would add Facebook following the end of the stock’s fifth trading, which was Thursday May 24, and that the change would be reflected in the ETF on the next trading day.

Global X could not confirm the weight of Facebook within SOCL, but assuming the 8.8% allocation from the index carries over to the ETF, Facebook would have been SOCL’s fourth-largest constituent on Thursday behind LinkedIn (NYSE: LNKD), China’s Tencent Holdings and Sina (Nadaq: SINA).

SOCL has lost about 5% since Facebook’s IPO on May 18, but the ETF has seen it’s assets under management surge to over $25.1 million from $16 million and its average daily volume jump to over 50,000 shares from 36,000 shares.

At the close of markets on May 24, SOCL was home to 27 stocks with other prominent names including Google (Nasdaq: GOOG), Groupon (Nasdaq: GRPN) and Yelp (NYSE: YELP).

Read more: http://www.benzinga.com/trading-ideas/long-ideas/12/05/2617744/social-media-etf-index-weights-facebook-at-8-8#ixzz1vtceHIRe

What’s Next?..Options Trading On Facebook (FB)

Options on Facebook (NASDAQ: FB) will be available as early as May 29th. With volatile price action in FB after its IPO, traders will look to options strategies to profit

In the next several months FB is going to face pressure to grow into its current 100 Billion dollar valuation. As a growth stock trading over 100 times earnings, any sign of slower growth in Facebook will cause the stock to plummet quickly.Traders who do not think Facebook can hold its current valuation have a number of options strategies to profit from any fast downside price action.

Depending on implied volatilities of FB options, traders can be either short or long volatility. It is unlikely that FB stock will increase or decrease in value by more than 30% in one year. If options are trading will implied volatilities greater than 30%, traders should be net sellers of options. Selling vertical call spreads, which involves selling call options at strike prices above the current price and buying a call option at strike prices even farther out from the current price. This strategy will be profitable if FB maintains its price or decreases.

Notes WallachBeth Capital’s Randy Sharringhausen, an institutional options market expert, “Even if the company’s fundamentals don’t come close to justifying its IPO price, this is a company that has 450 million customers that visit every day and a corporate treasury flush with enough currency to finance any number of  major acquisition to better monetize its customers.  This should prove to be an interesting name to trade by the hedge fund and risk arb community, as well as the long/short managers.”

Continue reading

#Facebook Over-Booked? Or Over-Cooked?

Breaking News: Bloomberg LP reports Facebook will be raising its IPO price range by 15% (from $28-$34 to $34-$38) and AAPL co-founder Steve Wozniak said he will buy shares in Facebook at the get go, regardless of price.

AAPL co-founder Steve Wozniak

In the same story, Bloomberg LP also reported  a “Bloomberg Global Poll” of more than 1,250 investors, analysts and traders  found 79% of those polled believedFacebook doesn’t deserve such a high valuation (that  poll was based on the lower pricing set just one week ago).