Is It Finally The Right Time To Short Facebook? 📉

Many have called ”the end” of Facebook (NASDAQ: $FB) for years now.

Well, now it’s our turn. 

Short Facebook at $220 with a 2020 year end target of $130 – here are a few reasons why.

Facebook-Internet-Bull-Report

We think people are genuinely bored of facebook, as are we. Facebook feels like work. Like a chore. The fun seems to have gone. It feels old and stale. Getting a friend request, a like or love, a share used to be exciting. Not anymore.

It seems advertising has taken over much of the platform. We see less of our friends feeds, very little in fact. Why have 5000 in your network if you only get to see posts from 25?

Governments around the world are angry with facebook. Governments know facebook has really no option at the moment but to pay up or settle quickly. Antitrust lawsuits are mounting. Facebook will get hit with larger and larger fines.

Nancy Pelosi has just recently bashed facebook – accusing the company of only thinking about profits and not about truths and impact on children.

FANG stocks have been looking for a reason to decline, and here it is.

Facebook reports January 29th. Flip a coin. Good earnings and the stock may pop 10%. Bad earnings, and the stock gets hit 20% and begins its inevitable decline to our target of $130.

Facebook-Stock-Internet-Bull-ReportThe verdict:

  • The market cap is an insane $630 Billion 
  • Company is trading at a frothy 35X earnings.
  • Stock is trading at an all time high of $220.

Short Facebook for 2020 – the IBR target: $130

Luka Marjanovic

Partner

Luka holds a Bachelor’s in International Business and a Master’s in International Management. During his undergraduate studies he worked as a research assistant in the field of Big Data; founded his own consulting firm providing services to local SME's in various sectors and invested in the capital markets; as well as working pro-bono providing education and career counselling. Prior to his business education, he studied Biology-and-Biotechnology, and served in the Danish Royal Army as Second Sergeant, leading and managing a group under extreme conditions and pressure. Luka has spent significant time abroad, living and working in seven different countries. When he's not in the office, he's chasing the next gusts windsurfing, carving the mountain snowboarding or out in the forest for a jog.

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