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Barron's Pushes Facebook (NASDAQ:FB) Under $21, So Where Do We Go From Here?


Barron's says Facebook is worth $15. Are they insane?

Given the subsequent bounce in the stock, it seems that investors interpreted that statement as Zuckerberg guiding up for the quarter, which seems a little presumptuous given the fact that he's so long-term oriented.

Thus, Facebook may not be able to beat rising expectations.

That means extreme risk heading into the next earnings report. In fact, I posted this on Minyanville's Buzz & Banter (click here for a free two-week trial, on me) late Friday afternoon:

I'm having an awfully hard time resisting throwing money at Facebook because I see little downside risk until the next earnings report (which I am afraid of).

Mark Zuckerberg's appearance at the TechCrunch conference -- which I think didn't really offer anything new -- gave the bulls some much-needed confidence and the bears a reason to stop shorting/selling.

That definitely gives the bulls the near-term advantage.

However, I remain more worried than most about the quarter.

The Zuck said it was a great time to double down on Facebook, but he wasn't necessarily talking about the stock based upon some near-term financial acceleration. To me, he was talking about Facebook as a place to work.

One thing's for sure -- if Facebook doesn't have a huge, mobile-driven quarter, it's getting the smack down BIG TIME. In fact, when we do get to earnings season, I might buy way out-of-the-money puts to bet on this possibility, because sentiment just took a 180-degree turn based on questionable evidence.

Position in AAPL
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