Hard to invest in FB stock.
It is hard to invest in FB stock after falling almost $10 at the time of this writing. The New York Times reported that a UK-based company, Cambridge Analytica, accessed data on up to 50 million Facebook users. While all the details seem to be hearsay at this point, Facebook stock might get pummeled for several days. So much for MKM Partners’ upgrade of $240.
It is getting more difficult to protect users and their data on every platform. People adding pertinent information about themselves and their daily actions on social media is not the safest of things. While they are getting used to the “new norm” of publicizing and documenting their life for others to see, hackers are building new ways of stealing that information not for the greater good.
Also, it is important to understand that various groups of all sides will try to use algorithms to shape your opinion via “news stories.” Not only is this done for businesses sake. Having an algorithm that dictates a one-sided viewpoint builds an extremist kind of human being that will not allow a different point of view from others. Hence, the division begins. Social Media and News Outlets are the source of this divide.
It is quite interesting that FB stock is falling so hard, when everyone with some kind of stock savvy knows that all these tech companies should and will fail. Too many organizations will steal your information. But the market makers love to indulge in a lavish lifestyle only to fall from graces on American Greed. How many stories are there not shown to us the public?
While the daily calls and put option traders can enjoy themselves with day trading, I would not recommend to invest in FB stock. Eventually, all these type of companies will fail. They might not for quite a while due to the prop done by Wall Street. But, if it took a “story” like the data breach to pummel a stock like Facebook, can you imagine what really goes on inside those companies that do not get this kind of publicity?