In the time that Facebook has fallen off a cliff, now to the tune of -48%, Apple is up 25%.
What I find amazing about Facebook is that the TV news outlets (even Bloomberg and CNBC) hyped and pumped this box of Dutch tulips like there would be no tomorrow if you didn't buy into the FB offering. But now, they're all tripping over themselves to expose the shortcomings of this company and its stock. I can't remember the gentleman's name off the top of my head, but there was at least one analyst who had the b@lls to call this one accurately, and ignore the hype during the FB road show. He said, "would you buy stock from a guy wearing flip-flops and a hoodie?!" And considering what we're seeing (or not seeing) from this kid, that was a brilliant call. He may be an excellent computer engineer, but he does not have what it takes to be a chief executive officer, IMO.
Over the next nine months or so, another 1.8 billion Facebook shares could hit the market. And with current insiders and early investors already dumping shares as soon as their lockups expire, one could expect some percentage of that 1.8 billion to knock this dog down even further. Not a guarantee, but certainly a risk. Apple has some risk associated with it too. But I think the new iPhone will be a big hit (if it is anything like the rumors suggest) and the next iPad should be a hit as well. That's to say nothing of how AAPL's sales and profits would be helped by other products that are currently just rumors.
Sold AAPL to buy FB...
How ya doin'?!