It’s all fun and games until Facebook misses their revenue number…
Tonight Facebook has lost approximately 20 percent of it’s value.
Let’s give it some context….Facebook is down FOUR full Twitter’s tonight or $120-$140 BILLION.
I joked that it was in bad taste that Zuckerberg played the Russian national anthem to start the conference call.
I have no idea what happens tomorrow or next week. Facebook is still well above the price when of the last scandal and it has 2.2 billion people using it. I’ll keep it on my 8 to 80 list but I do want to replace it with a brand I have more faith in over the next 10-20 years. I did make a ton of calls this afternoon and evening to people in tech industry for opinions and thoughts. Zuckerberg does not want to be some value stock CEO. They have bought their way out of trouble before and I would bet they will at least try to do that again. This next time it SHOULD be an acquisition that puts them in the transaction – so for example Shopify and or Coinbase (already plenty of rumors in the blogosphere).
All armchair quarterbacking aside, gaps like this scare people. They should. It’s my job to harness the volatility and position myself for the calm that eventually follows.
One thing I do know, is that a generation of new options traders/investors on Robinhood are going to get hooked on action like this.
In the big scheme of things, not much has changed tonight with respect to Nasdaq 10,000 being a lock. I’ve been silly optimistic because of how I get to live my life and my eyes, ears, feet and network that I rely on to make investment decisions. What everyone needs to remember is that the Nasdaq can go to 5,000 on the way to 10,000 and try to visualize what their portfolio would like like if the Nasdaq was at 5,000.
Just yesterday, I sold down some stocks because of how optimistic I was behaving.
When I feel this hot and a bit smug about being right … I sell down some stocks and Bitcoin which I am doing this morning …
— Howard Lindzon (@howardlindzon) July 24, 2018
Everyone has different styles and I try to stay true to some best practices. One of them is selling on the way up and using my blog as a thermometer to how I am feeling and behaving.
I make huge mistakes along the way (I have chronicled them here too). The mistakes are how and why you create best practices.
The actual price action and breadth of the market says that we have little to worry about and I see a lot of new stocks that I am willing to buy if the market stays strong.
Also published on Medium.