Quote:
Originally Posted by GregWeld
So here's a couple more of those "priced for perfection" stocks -- which in my opinion has little to do with the actual performance of a growth company...
Yelp! Reports it has 256% growth from the previous quarter -- the stock get hammered! Down 12% in 5 days...
FaceBook -- Huge growth in almost every metric - but not good enough - BAM! Drops like a rock after hours - it's down 10%
What do we learn from this kind of action?? Seriously? What's the take away... the companies have HUGE growth -- they're making money...
You learn that the STOCK PRICE isn't always connected to the actual facts.. and when that price is connected to huge expectations... even if the company does really really well.... YOU GET HAMMERED in the price.
Are these stocks good to buy on the dips? If I was a young man looking for some long term growth -- I'd be a buyer of FaceBook on the pull back. Not much but I'd dip a toe in. THEN WAIT! Wait for them to report another quarter... Never go jumping into the deep end without knowing the depth of the pool! Check it out first...
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What does a 10% drop really mean? To me it means If I were to sell today I would only get just over 100% increase in share price on my FB stock... I wish things got "hammered" like tat more often :-)