Harvard Management Co, a US company managing the assets of Harvard University, is reported to have purchased 20 000 shares of Facebook’s stock. The deal is estimated at $436.140 (20 000 * $21.81 per share).
What do experts think about the deal? will help to answer the question.
With all due respect to Harvard University, buying US stocks when the major trend is bearish is inefficient and rather risky. The experts in stock markets from assume this deal is a loser because Facebook’s stock is likely to continue its downtrend.
Numerous investors, who previously laid big hopes on the stock, later suffered major losses after Facebook reported about losses itself.
The latest financial report for Q2 2012 published by Facebook indicated a $157 million loss. According to David Ebersman, CFO of Facebook, the mentioned sum is just the expenses paid to the company’s employees in the form of shares and call options. The statement looks reassuring in terms of Facebook’s prospects.
The chart below, courtesy of , reflects the current state of affairs in the market of Facebook’s stock:
During the 2nd quarter, Facebook tripled its expenses as compared to Q2 2011 up to $413 million.
