Wednesday, April 13, 2016

10 Reasons You Can't Short Facebook

*Facebook is a game changer with years of market leadership ahead.
*No other player can easily catch up to Facebook's share of social.
*Facebook has accelerating revenue growth, high margins, and huge swaths of advertising market wallet to win.

Facebook (NASDAQ:FB) is expected to report earnings April 27th after the market close. There seems to be some concerns about Facebook's upcoming quarter from several Wall Street firms. We think there is a chance that revenues can accelerate and beat Street estimates despite many of the recent worrisome reports.
Because the stock is up in a (deserved) straight line, we have to be patient for a pullback. For that, we have a hold rating. If the stock were not up in a straight line, it would be worthy of a buy.
At times, traders have the urge to short a stock 'up too much' on 'value' which is typically a losing plan unless they sniff out a chink in the armor. For that reason, we wanted to list 10 reasons why we don't think Facebook is a short for, potentially, years to come.
10. Business Is Accelerating

Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. Disclosure: These trades can lose you money and principle especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS

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