That accounts for some of the buying, but surely not all of it given the big percentage move the stock's having, coupled with the hideous action in the stock market overall.
What else is behind the surge? I think there is a sense that after an initial period where Facebook was blindsided by the quick migration of traffic from the desktop to the smart phone, and the concomitantly lower prices for advertisements that mobile gets, management was able to re-adjust and find lucrative ways to capitalize off the trend.
Their strategies have allowed them to improve profitability and better harness and monetize the billion users who have signed up for the site, many of whom access it regularly.
I think Facebook's turned the corner here. Many of the companies I talk and listen to have recently embraced advertising in Facebook, as we just heard from luxury goods purveyor Michael Kors (KORS), as well as from advertisers as varied as Buffalo Wild Wings (BWLD), Domino's (DPZ) and Procter & Gamble (PG). The fact that there's so much buying today tells me I am not alone.
So, do you buy it up here? Everything seems to sell off in this market after a one or two day rally on good news, so you want to be careful after this gain. That said, if you don't own it already, I think you should take the plunge if it comes in.
Yep, today's action tells you the worst is over for Facebook and, perhaps, the best is yet to come.
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