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  1. #1
    M.J
    M.J is offline
    Veteran Member M.J's Avatar

    CFO killed(almost) FB !!!

    FB continues to grow especially growth in revenue from mobile users is impressive. Overall revenue increase is about 60% in Q3 beating WS expectations. FB soared about 18% after strong quarterly result.
    But why is it trading around $49 now? What took it back to $49? It was actually a statement from CFO David Ebersman about younger teens leaving facebook.
    As soon as investors saw this statement, AAPL started bearish journey. Investors loved quarterly results but this single statement was enough to offset all that love.

    It reminds me of Icahn's tweet a couple of months back about AAPL which, unlike this statement, boosted AAPL stock.

  2. #2
    Veteran Member Dan21's Avatar
    I didn’t understand what is the relation between FB CFO speech and the Apple stock price? Is there a connection which I didn’t understand for the moment or something else I missed?

  3. #3
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by Dan21 View Post
    I didn’t understand what is the relation between FB CFO speech and the Apple stock price? Is there a connection which I didn’t understand for the moment or something else I missed?
    Statements from CFO, CEO and other such high level executives do have significant impact on stock price especially when they r negative. Positive statements are given almost zero importance as an executive of a company is always expected to speak in favor of his company. But negative comments about his company can do significant damage to stock price and this is what we saw yesterday.

    If a CFO says, for the first time, that FB usage among teens is decreasing then it is not just a "statement" from some random guru or analyst. FB CFO actually admitted that facebook is loosing popularity among teens and thus FB is struggling.

  4. #4
    Veteran Member hchandra's Avatar
    It was really interesting to see how FB performance really great but they are pessimist toward the future,
    What MJ means might be forecast from high executive in one big company toward their future will impact other big company in the same sector,

    The comment of course have high impact to the company itself, we don't prefer to invest to someone who already said
    "tornado in front of us, we might not be able to escape from it"
    just an extreme example.

    For me AAPL might survive with Icah currently urge them to buyback share with $150b funds, some said around 11 November or something, still rumor though.

  5. #5
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by hchandra View Post
    For me AAPL might survive with Icah currently urge them to buyback share with $150b funds, some said around 11 November or something, still rumor though.
    But Icahn's statement was criticized. I have not heard any rumor about Tim Cook's response but it will be interesting to see what he says.

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