Facebook Diary: Another Day, Another 52-Week Low
In a recent interview with Lindsey Bell, Jim Cramer, founder of TheStreet.com as well as host of CNBC's "Mad Money," offered his opinion on what it would take to fully recognize the bottom on the stock.What I felt stood out the most from all Cramer offered is he believes that in order for Facebook shares to truly bottom, it would first require not only evidence of insider buying but analysts will have to downgrade the stock while also lowering their estimates.
While I agree with Cramer, I wonder if any of the three scenarios will play out -- much less all three at the same time. The reason is that Wall Street comes across too often as caring more about being perceived as right than as smart. After all, this is precisely the reason why Facebook and its investors are in this mess in the first place -- a mess borne out of its hype-filled IPO that Wall Street has left for others to clean up.
My article suggesting that Apple(AAPL) would make a play for Facebook should the stock drop below $20 was not well received by some readers. But for me it's more than just about what makes sense. It's also being opportunistic.
Whether or not Apple acquires Facebook is not the issue -- rather, if the valuation is right, Apple would love the chance to do two things.