Investing in Facebook Stock? Keep an Eye on Dec. 12
Facebook stock (Nasdaq: FB ) investors are getting an early holiday present. That's because on Dec. 12, shares of the world's largest social networking company will be added to the Nasdaq 100 Index . Facebook will have some very good company in the index, joining tech behemoths Apple Inc. (Nasdaq: AAPL ), Google Inc. (Nasdaq: GOOG ), and Microsoft Corp. (Nasdaq: MSFT ). It'll rank 13th by market value ($60 billion). Snagging a spot in the coveted index, a compilation of the 100 most valuable non-financial stocks traded on the Nasdaq, is the latest in a string of welcome news for Facebook shareholders, especially those bruised in its initial public offering fiasco on May 18. And the news couldn't have come at a better time for shareholders. Here's why. To continue reading, please click here...
Facebook stock (Nasdaq: FB) investors are getting an early holiday present.
That's because on Dec. 12, shares of the world's largest social networking company will be added to the Nasdaq 100 Index.
Facebook will have some very good company in the index, joining tech behemoths Apple Inc. (Nasdaq: AAPL), Google Inc. (Nasdaq: GOOG), and Microsoft Corp. (Nasdaq: MSFT). It'll rank 13th by market value ($60 billion).
Snagging a spot in the coveted index, a compilation of the 100 most valuable non-financial stocks traded on the Nasdaq, is the latest in a string of welcome news for Facebook shareholders, especially those bruised in its initial public offering fiasco on May 18.
And the news couldn't have come at a better time for shareholders.
Here's why.
The Good News for Facebook Stock Investors Scores of major mutual funds that allocate funds primarily or solely to a specific index or sector and/or exchange-traded funds (as detailed in their prospectus), are frequent and prominent investors in the Nasdaq 100.
So, those funds - fans of Facebook stock or not - must add the security to their stash of holdings.
As a result, trading in Facebook stock will see a pop and its price may also be goosed.
More than $49.4 billion was invested in Nasdaq 100 funds or related products last year, according to the totally electronic exchange, USA Today reported.
Rebalancing of the index occurs yearly as the exchange tosses out companies whose value has dipped and no longer warrants a position in the index, replacing the old with more valuable companies.
Sometimes, as in Facebook's case, the Nasdaq opens the door early due to an exit of a member. In this case it's the exodus of Infosys (Nasdaq ADR: INFY), which is ditching the Nasdaq for the rival NYSE.
But, investors be warned - this phenomenon could very well be short lived and temporary. After all-the Nasdaq 100 invite is a one-time deal.
MORE: Short-term stock jumps are great for gains, but don’t be fooled – here’s what FB stock is really worth.body #pp-popup-50bfc84fba2c9 div,body #pp-popup-50bfc84fba2c9 dl,body #pp-popup-50bfc84fba2c9 dt,body #pp-popup-50bfc84fba2c9 dd,body #pp-popup-50bfc84fba2c9 ul,body #pp-popup-50bfc84fba2c9 ol,body #pp-popup-50bfc84fba2c9 li,body #pp-popup-50bfc84fba2c9 h1,body #pp-popup-50bfc84fba2c9 h2,body #pp-popup-50bfc84fba2c9 h3,body #pp-popup-50bfc84fba2c9 h4,body #pp-popup-50bfc84fba2c9 h5,body #pp-popup-50bfc84fba2c9 h6,body #pp-popup-50bfc84fba2c9 pre,body #pp-popup-50bfc84fba2c9 code,body #pp-popup-50bfc84fba2c9 form,body #pp-popup-50bfc84fba2c9 fieldset,body #pp-popup-50bfc84fba2c9 legend,body #pp-popup-50bfc84fba2c9 input,body #pp-popup-50bfc84fba2c9 textarea,body #pp-popup-50bfc84fba2c9 p,body #pp-popup-50bfc84fba2c9 blockquote,body #pp-popup-50bfc84fba2c9 th,body #pp-popup-50bfc84fba2c9 td{margin:0;padding:0;line-height:normal;}body #pp-popup-50bfc84fba2c9 table{border-collapse:collapse;border-spacing:0;}body #pp-popup-50bfc84fba2c9 fieldset,body #pp-popup-50bfc84fba2c9 img{border:0;}body #pp-popup-50bfc84fba2c9 address,body #pp-popup-50bfc84fba2c9 caption,body #pp-popup-50bfc84fba2c9 cite,body #pp-popup-50bfc84fba2c9 code,body #pp-popup-50bfc84fba2c9 dfn,body #pp-popup-50bfc84fba2c9 em,body #pp-popup-50bfc84fba2c9 strong,body #pp-popup-50bfc84fba2c9 th,body #pp-popup-50bfc84fba2c9 var{font-style:normal;font-weight:normal;}body #pp-popup-50bfc84fba2c9 li{list-style:none;}body #pp-popup-50bfc84fba2c9 caption,body #pp-popup-50bfc84fba2c9 th{text-align:left;}body #pp-popup-50bfc84fba2c9 h1,body #pp-popup-50bfc84fba2c9 h2,body #pp-popup-50bfc84fba2c9 h3,body #pp-popup-50bfc84fba2c9 h4,body #pp-popup-50bfc84fba2c9 h5,body #pp-popup-50bfc84fba2c9 h6{font-size:100%;font-weight:normal;}body #pp-popup-50bfc84fba2c9 q:before,body #pp-popup-50bfc84fba2c9 q:after{content:'';}body #pp-popup-50bfc84fba2c9 abbr,body #pp-popup-50bfc84fba2c9 acronym{border:0;font-variant:normal;}body #pp-popup-50bfc84fba2c9 sup{vertical-align:text-top;}body #pp-popup-50bfc84fba2c9 sub{vertical-align:text-bottom;}body #pp-popup-50bfc84fba2c9 input,body #pp-popup-50bfc84fba2c9 textarea,body #pp-popup-50bfc84fba2c9 select{font-family:inherit;font-size:inherit;font-weight:inherit;}body #pp-popup-50bfc84fba2c9 input,body #pp-popup-50bfc84fba2c9 textarea,body #pp-popup-50bfc84fba2c9 select{*font-size:100%;}body #pp-popup-50bfc84fba2c9 legend{color:#000;}body #pp-popup-50bfc84fba2c9 del,body #pp-popup-50bfc84fba2c9 ins{text-decoration:none;} body #pp-popup-50bfc84fba2c9 h1{font-size:138.5%;}body #pp-popup-50bfc84fba2c9 h2{font-size:123.1%;}body #pp-popup-50bfc84fba2c9 h3{font-size:108%;}body #pp-popup-50bfc84fba2c9 h1,body #pp-popup-50bfc84fba2c9 h2,body #pp-popup-50bfc84fba2c9 h3{margin:1em 0;}body #pp-popup-50bfc84fba2c9 h1,body #pp-popup-50bfc84fba2c9 h2,body #pp-popup-50bfc84fba2c9 h3,body #pp-popup-50bfc84fba2c9 h4,body #pp-popup-50bfc84fba2c9 h5,body #pp-popup-50bfc84fba2c9 h6,body #pp-popup-50bfc84fba2c9 strong{font-weight:bold;}body #pp-popup-50bfc84fba2c9 abbr,body #pp-popup-50bfc84fba2c9 acronym{border-bottom:1px dotted #000;cursor:help;}body #pp-popup-50bfc84fba2c9 em{font-style:italic;}body #pp-popup-50bfc84fba2c9 del{text-decoration:line-through;}body #pp-popup-50bfc84fba2c9 blockquote,body #pp-popup-50bfc84fba2c9 ul,ol,body #pp-popup-50bfc84fba2c9 dl{margin:1em;}body #pp-popup-50bfc84fba2c9 ol,body #pp-popup-50bfc84fba2c9 ul,dl{margin-left:2em;}body #pp-popup-50bfc84fba2c9 ol li{list-style:decimal outside;}body #pp-popup-50bfc84fba2c9 ul li{list-style:disc outside;}body #pp-popup-50bfc84fba2c9 dl dd{margin-left:1em;}body #pp-popup-50bfc84fba2c9 th,body #pp-popup-50bfc84fba2c9 td{border:1px solid #000;padding:.5em;}body #pp-popup-50bfc84fba2c9 th{font-weight:bold;text-align:center;}body #pp-popup-50bfc84fba2c9 caption{margin-bottom:.5em;text-align:center;}p,body #pp-popup-50bfc84fba2c9 fieldset,table,body #pp-popup-50bfc84fba2c9 pre{margin-bottom:1em;}body #pp-popup-50bfc84fba2c9 input[type=text],body #pp-popup-50bfc84fba2c9 input[type=password],body #pp-popup-50bfc84fba2c9 textarea{width:12.25em;*width:11.9em;} jPPUI('#pp-link-50bfc84fba2c9').data('options', {"ID":"70925","options":{"width":"480","height":"280","shadow":false,"background":"#ffffff","noTitle":true,"frameColor":"#aaaaaa","frameSize":0,"borderRadius":"0","closeOnEscape":false,"closeOnOuterClick":false,"closeBtnX":true,"affiliate":false,"modal":true,"overlay":true,"overlayColor":"#2f2727","overlayTransparency":50,"sticky":true,"webroot":"http:\/\/moneymorning.com\/wp-content\/plugins\/platinumpopup","draggable":false,"frameStyle":"solid","closeOnMouseLeave":false,"ID":"50bfc84fba2c9"},"title":"Gated Content Popups (one liners)","content":"<div id=\"ppopup-50bfc84fba2c9\" class=\"ppopup\"><div class=\"widget cfox_preload\"><div class=\"cfox_preload_widget\"><\/div><\/div><\/div>"});
Facebook Stock Not Out of the Woods Despite the recent spate of better news for Facebook, which has been struggling to gain traction and save face after its fabled IPO was a flop, the stock is not out the woods by any means.
Rising from a low of around $17.75 in September, and currently trading at $27.48, shares remain well below their debut price of $38 or peak of $43 reached on first day of trading. Plus, Facebook's present valuation of $60 billion is nearly half the $100 billion valuation it carried when it became a public company.
Weighing on the stock has been the torrent of shares that have flooded the market over the last few months due to the expiration of lockups, which has allowed many insiders to cash in. And many have done just that.
Another concern is how Facebook is monetizing its massive 1 billion user base.
As more and more members are accessing the site exclusively via mobile devices, an arena where Facebook fails to make much revenue, the social network giant, late to the game, continues to play catch-up.
Facebook has been adding new features, is making headway in mobile, and by all appearances is enjoying an upward trend.
But that's the thing with trends. They're fleeting.
Waving a bright red flag is Facebook stock's short position, which is growing in spite of the better news, recent upgrades and winding down of the lockup expirations.
According to data by the Nasdaq National Market, on Nov. 15 Facebook's short position rose to more than 95 million shares from 87 million, an increase of more than 7 million from Oct. 31, a staggering number of shorted shares.
So plenty of market participants remain wary, if not downright bearish, on Facebook stock - but a short-term bump looks to be on the way.
Related Articles and News:
Tags: Facebook Inc Nasdaq: FB, Facebook IPO, facebook stock, Facebook stock price, FB Stock Price, investing in facebook stock, Nasdaq: FB
Facebook will have some very good company in the index, joining tech behemoths Apple Inc. (Nasdaq: AAPL), Google Inc. (Nasdaq: GOOG), and Microsoft Corp. (Nasdaq: MSFT). It'll rank 13th by market value ($60 billion).
Snagging a spot in the coveted index, a compilation of the 100 most valuable non-financial stocks traded on the Nasdaq, is the latest in a string of welcome news for Facebook shareholders, especially those bruised in its initial public offering fiasco on May 18.
And the news couldn't have come at a better time for shareholders.
Here's why.
The Good News for Facebook Stock Investors Scores of major mutual funds that allocate funds primarily or solely to a specific index or sector and/or exchange-traded funds (as detailed in their prospectus), are frequent and prominent investors in the Nasdaq 100.
So, those funds - fans of Facebook stock or not - must add the security to their stash of holdings.
As a result, trading in Facebook stock will see a pop and its price may also be goosed.
More than $49.4 billion was invested in Nasdaq 100 funds or related products last year, according to the totally electronic exchange, USA Today reported.
Rebalancing of the index occurs yearly as the exchange tosses out companies whose value has dipped and no longer warrants a position in the index, replacing the old with more valuable companies.
Sometimes, as in Facebook's case, the Nasdaq opens the door early due to an exit of a member. In this case it's the exodus of Infosys (Nasdaq ADR: INFY), which is ditching the Nasdaq for the rival NYSE.
But, investors be warned - this phenomenon could very well be short lived and temporary. After all-the Nasdaq 100 invite is a one-time deal.
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Facebook Stock Not Out of the Woods Despite the recent spate of better news for Facebook, which has been struggling to gain traction and save face after its fabled IPO was a flop, the stock is not out the woods by any means.
Rising from a low of around $17.75 in September, and currently trading at $27.48, shares remain well below their debut price of $38 or peak of $43 reached on first day of trading. Plus, Facebook's present valuation of $60 billion is nearly half the $100 billion valuation it carried when it became a public company.
Weighing on the stock has been the torrent of shares that have flooded the market over the last few months due to the expiration of lockups, which has allowed many insiders to cash in. And many have done just that.
Another concern is how Facebook is monetizing its massive 1 billion user base.
As more and more members are accessing the site exclusively via mobile devices, an arena where Facebook fails to make much revenue, the social network giant, late to the game, continues to play catch-up.
Facebook has been adding new features, is making headway in mobile, and by all appearances is enjoying an upward trend.
But that's the thing with trends. They're fleeting.
Waving a bright red flag is Facebook stock's short position, which is growing in spite of the better news, recent upgrades and winding down of the lockup expirations.
According to data by the Nasdaq National Market, on Nov. 15 Facebook's short position rose to more than 95 million shares from 87 million, an increase of more than 7 million from Oct. 31, a staggering number of shorted shares.
So plenty of market participants remain wary, if not downright bearish, on Facebook stock - but a short-term bump looks to be on the way.
Related Articles and News:
- Money Morning:
Facebook Stock is up 24% This Month-Will It Keep Going? - Money Morning:
Facebook Stock Rises Despite These 852 Million Reasons to Fall - Money Morning:
Why Facebook Stock Soared After Earnings Report - USA Today:
Facebook joins Nasdaq 100, may boost stock - Forbes:
Facebook added to Nasdaq 100 Index; Replaces Infosys
Tags: Facebook Inc Nasdaq: FB, Facebook IPO, facebook stock, Facebook stock price, FB Stock Price, investing in facebook stock, Nasdaq: FB