As you probably know, Facebook (symbol FB) suffered the worst dollar loss of any equity in human history last week. In a matter of seconds, a quarter trillion dollars of shareholder valued disappeared into precisely the same source of today’s money – – – into thin air. I have less than zero interest in owning Facebook, but I at least wanted to point out it is very near its lifetime trendline.
What does that mean? On the bullish hand, it means it’s a great price for the long haul. On the bearish side, it means that there’s a meaningful chance of a trendline failure, which would be long-term catastrophic.
I’ll say this, at least – – with the laughable explosion higher that stocks have enjoyed the past couple of days, Facebook’s performance is absolutely pathetic.
Maybe Mark’s day in the sun has finally set. I mean, if a college freshman in a dorm can hack together something which makes him one of the richest men in the history of the world, you figure, sooner or later, it’s going to falter.