Back in mid-November, it appeared that Facebook (FB) was headed to the teens for good as investors became very pessimistic regarding the stock. Along came the much-expected massive stock lock-up on November 14th and the market was surprised to see the stock soar instead of plunging to new lows. Within weeks, the stock soared from a low around $19 to $26.15. An incredible 35% surge for a stock left for dead.
A major reason for the leader in social media surging was three analysts increasing price target this week. What has made analysts so bullish on a stock that recently traded as low as $17 to only be upgraded once the stock hit $24?
The stock remains a favorite short candidate of us, but our firm has been on the sidelines waiting for a better entry point after the market became too bearish based on the lock-up issues and the mobile monetization fears. See our previous articles here. Note the comments section has been full of warnings that the lock-up might trigger a bottom.
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