Finance
Facebook: Millennial investors piling into shares after earnings plunge
Young investors are betting that
Facebook’s earnings disaster and
subsequent stock landslide are presenting a buying
opportunity to get the stock at an attractive valuation.
Data pulled from Robinhood — the free stock-trading app popular
with young adults — shows roughly 27,000 more users had snapped
up the stock Thursday morning compared to the same time a week
ago.
The spike in popularity also takes Facebook up to the fifth most
popular stock on the brokerage, its Top 100 page shows. The
social-media giant was as low as number 10, when Business Insider
first began tracking the data in June.
Shares of Facebook declined as much as 26% —
wiping out over $115 billion in market value — following the
social network’s earnings report that showed a shortfall on
revenue compared to what analysts had expected and a decline in
user metrics for the first time.
But while the slump may be a good buying opportunity, it didn’t
take Facebook into the red for the year. Wednesday’s drop has
shares trading at levels seen just before a data-privacy
scandal surrounding the firm Cambridge Analytica and its role in
Russian interference in the 2016 US presidential election
surfaced.
Analysis from the stock-trading forum StockTwits points to
investors being bullish ahead of the results.
Eighty percent of the discussions were bullish heading into
earnings, the firm said in an email to Business Insider, adding
that “investors seem unphased after seeing Facebook’s ability to
weather the Cambridge Analytica news.” Those investors are likely
having second thoughts on Thursday.
Facebook is now down 3.2% this year.
-
Entertainment6 days ago
WordPress.org’s login page demands you pledge loyalty to pineapple pizza
-
Entertainment7 days ago
The 22 greatest horror films of 2024, and where to watch them
-
Entertainment7 days ago
Rules for blocking or going no contact after a breakup
-
Entertainment6 days ago
‘Mufasa: The Lion King’ review: Can Barry Jenkins break the Disney machine?
-
Entertainment5 days ago
OpenAI’s plan to make ChatGPT the ‘everything app’ has never been more clear
-
Entertainment4 days ago
‘The Last Showgirl’ review: Pamela Anderson leads a shattering ensemble as an aging burlesque entertainer
-
Entertainment5 days ago
How to watch NFL Christmas Gameday and Beyoncé halftime
-
Entertainment4 days ago
Polyamorous influencer breakups: What happens when hypervisible relationships end