Are you freaking out?
There are people out there that are having conniption fits over what happened with one of the world’s most famous (or infamous) stocks – Facebook (FB).
In ONE day of trading, Facebook lost $120 billion in value…
That. Is. Crazy. And people are freaking out.
Now, I totally understand why; $120 billion gone – literally overnight – is something that should freak people out, especially mainstream investors, who don’t pay attention to how the market works on a daily basis…
But is it something that we should all be freaking out about?
Or is it just a blip on the radar in today’s new market atmosphere?
Before I get into the meat of the subject of whether or not the trading world should be worried…
Let’s talk briefly about what happened to make Facebook’s value drop so far, so fast.
“The Conference Call Heard Round The World…”
That’s what some people are calling the July 25th investor analyst call with senior management of Facebook, because it was on that conference call that CEO Mark Zuckerberg told the world that even though two and half billion people are using its platform – it’s anticipating a growth and revenue slow down over the next coming years.
In today’s world of instant reactions, the stock started dropping before the call was even over…
It’s become obvious that while these analysts’ ears were on the phone – their fingers were hard at work on their computers – warning the world through a massive selloff that Facebook was in trouble.
During the call, the stock dropped hard and fast, while Zuckerberg was still talking, shares lost as much as 24% of their value from the day before.
Yes, shares of FB dropped almost ¼ of their value – that’s HUGE.
In fact, it was the biggest single day recorded loss of a major stock in the history of the market – ever!
At its lowest point, the stock lost more than $148 billion of the company’s value – which is more than some other major stocks’ entire market cap.
But while the shares recovered some by the end of the day – they were still down around 20%, which is still nothing to shake a stick at.
However, the question remains…
Should we be freaking out?
Honestly, I don’t think so…
First of all, Facebook is still worth more than half a trillion dollars. While it may have lost 20% of its value – it’s still worth a hell of a lot of money.
A lot would have to happen in order for the company to see another loss of this magnitude ever again – so the good news is this…
FB shares may stagnate for a bit – but I don’t see it doing anything but going up after things stabilize.
What does that mean in layman’s terms?
It means that we may not see Facebook shares this low ever again – creating what could be a tremendous buying opportunity.
It’s not often that we see shares of a major company this affordable…
Giving people the chance to buy the stock that otherwise wouldn’t be able to – as you can now buy shares at a fraction of what you could have just a day before the conference call.
So, to be more definitive in my answer as to whether or not we should all be freaking out like Chicken Little over the Facebook stock drop: no… we shouldn’t be freaking out.
For Facebook, while it was a little more significant than just a blip on its radar – ultimately, it sets a more realistic picture for the future of the company.
And that’s never a bad thing…
Subscribers of GorillaTrades rarely freak out – the trading matrix allows for a diverse selection of stocks, with realistic price points and tight loss margins.
When you have the security of data – it’s hard to get freaked out because there are safeguards in place to ensure that even if a pick doesn’t perform as expected – that subscribers very rarely lose enough to mention.
Luckily, we don’t lean on public opinion or follow the mainstream in moments of temporary panic…
We know what we have and we’re secure in the knowledge that our money is given the best chance it can to work for us.
I’d love to show you how it works…
Which is why I’m asking you now, please consider becoming a member of GorillaTrades before our next pick hits our subscribers’ inboxes.
Because our next recommendation could be our biggest yet!
However, we understand if being a part of a something isn’t your thing – we respect your “lone wolf” attitude…
But if that’s the case, do yourself a favor and take another hard look at Facebook before the world figures out that this wasn’t the sky falling in on Chicken Little – it was just an acorn.
“The eagle has no fear of adversity. We need to be like the eagle and have a fearless spirit of a conqueror!” – Joyce Meyer
