Facebook stock falls: Buy now? Or Stay clear?
9OYS Consumer Watch
TUCSON (KGUN9-TV) – Facebook stock has been sitting at just about $19 the last couple of days, which is a jump from earlier this week when it hit $18.75.
Facebook has been struggling since its Wall Street debut in May. The initial offering price on day one was $38.
Jake Kagele, with Nova Financial Services, tells 9OYS it is best for most Americans to stay away from the stock for the time being.
“I recommend for the short term investor stay away from it,” he stated.
Kagele, like many investors, is worried Facebook won’t grow revenue quick enough due to the lack of mobile advertising. With a lockout still in effect for many insiders, Kagele doesn’t think Facebook’s downward spiral is over.
“Up until November there's going to be 1.4 billion shares being freed up,” explained Kagele, “which will most likely drive the price down even further.”