On Thursday, there
were few unusual August call buying activities on Facebook
Inc(NASDAQ:FB) with 2,235 contracts were traded for the strike price
of $38 at premium price of $0.10(open interest of 7,311), while 1740 contracts
were traded for the strike price of $32 at premium price of $0.85 (open
interest of 12,978).
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Investors are quite
uncertain about the company’s upcoming quarterly earnings next week and thus
investors are playing safe. Those who made above transaction are expecting the
company to move significantly higher.
Moreover, on Thursday
$28 August put option was the most active with 921contracts were traded and
open interested stood at 18,566. Also, $25 August put option was the most
active with 833 contracts were traded and open interested stood at 17,482.
The company is under
pressure to add new users in certain markets, including the U.S., that make up
a significant portion if FB’s sales, according to report by Capstone
Investments. A forecasted slowdown in sales led analysts to cut their
second-quarter revenue projections to $1.16 billion in the past month. The
prediction for profit, excluding some items, fell 10% to 11 cents a share.
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Rory Maher, an analyst
at Capstone said that U.S. users on Facebook’s site declined 1.1%, citing
analysis of Facebook users in more than 200 countries. He also feels that
penetration in the U.S. is reaching maturity, which will cast a shadow on
revenue growth and user growth and hence is a reason to be concerned about.
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