Followed by the impressive earnings report last week, where the revenue and as well as the profits soared for the social media networking giant in the second quarter, bulls took over control where immense buying was seen on Thursday. The stock price rose by 30% in just one day while the fortune of Facebook’s CEO Mark Zuckerberg increased by $3.8 billion that same day.
As mentioned in our previous analysis that Facebook’s stocks are safe to buy as long as the price sustains above $25 a share, and so it was. Currently the share price is hovering near $35.1 a share that is the highest level since May 2012. Many analysts expected that profit taking would take place as a huge number of shares would be off-loaded but that hasn’t happened yet, where investors may be eying long-term gains on the stocks.
I would say that the earnings report and the confidence from generating of revenue through mobile devices has shown a bright ray of light to the investors of Facebook, which in result may take the share price further up. Keep buying it as long as it trades above $29.4 level.
Bankrupted Detroit – An opportunity or just a whim?
The city where the motor giant General Motors was originated declared one of the largest municipal bankruptcy a couple of weeks ago, but now Detroit bonds have become a centre of attention for the hedge funds as they are being traded actively on Wall Street these days.
Speculating the revival of the city, the influx of money through bond purchases may come in where $8.2 billion worth of bonds are tradable against city’s liabilities of $1.4 billion. Many hedge funds bought millions of dollars worth of pension bonds where they are enjoying 41 cents on one dollar. Speculation over city’s revival based on the improved of health care sector through Obamacare plan is being done, where many other potential buyers may enter the bond market. However, it would be safe to enter as long when a clear statement regarding the re-development and restructuring plan comes out from the government’s side and the local government.
Amazon to Add 7000 Jobs
The share price of Amazon has been on the run from the past several months as it has breached $300 a share level and is currently trading at $306.1 / share after it tested $312.01 on Monday. The bullish movement was seen as the Amazon announced that it would add 7000 jobs in the U.S where 5000 jobs would be in warehouses, where the compensation and benefits would be far better than a typical retail wages. Provided it remains above $292.5 a share, it would be safe to buy as the fall season is about to start where several events including Black Friday, Halloween, and Christmas boost up the sales sharply.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org