T3Live.com Chief Strategic Officer Scott Redler told TheStreet's Debra Borchardt that after the initial breakout higher from a positively received earnings report, the stock consolidated in a very tight pattern. Although at the time the price target seemed extreme, shares of Facebook are now over $48.
Redler admitted that he sold out of his position Monday and said others should be cautious because they might be facing a type of trader known as a "chaser" who will likely end up selling their Facebook shares on a pullback when others will be buying.
When asked if Facebook's experience will have any effect on the upcoming Twitter initial public offering, Redler said he hopes investment bankers learned their lessons from the Facebook IPO. As long as the bankers don't get greedy, Twitter should be fine with a valuation below $15 billion, he said.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell