FACEBOOK STOCK: A 20% DROP IN A WEEK, WHAT SHOULD INVESTORS KNOW?
FACEBOOK STOCK has dropped roughly 20% in a week after it warned that its revenue growth would take a hit. I believe this Facebook’s share price performance would be a very surprising one for its investors who may believe that in the era of internet and online social networking, Facebook should be on the trajectory to become worth more and more as time goes by. While it is not easy to see whether the showing by Facebook stock is a blip, this episode is a timely reminder to investors not to keep chasing branded stocks. The important thing is to always zoom in on fundamentals, exactly like how investors give Facebook stock a miss once its earnings are not up to expectations.
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