Facebook Shares Rallying Today

The market is rallying today and currently is up almost 2%.

Facebook shares are currently up more than 8% at close to $22.

Is $20 the floor for Facebook's stock? has the details:

"It’s been a wild week of a ride for Facebook’s stock.

Just a week ago, the social networking giant’s stock suffered its biggest one-day drop in its short history, falling nearly 12% to $23.70.

The social networking giant has had a rough week since then, as its shares hit one record low after another.

But Facebook is staging a comeback on Friday, jumping 8% to $21.71 in afternoon trades. At this rate, the stock could close with its biggest one-day gain since going public in May.

What’s going on?

The market is rallying . . . . (stock) analyst Michael Pachter speculated, “I suppose $20 is a psychological floor.” Facebook’s stock went through that floor on Thursday  dipping to a low of $19.82, almost 50% below its initial public offering price of $38.

Facebook and other social networking shares may have also gotten a lift from LinkedIn whose upbeat results sent its stock jumping 14%.

“I’m sure LinkedIn had as much to do with the rally as Zynga had to do with the decline,” Pachter added.

Zynga shares have also fallen sharply this week, down 10% since Monday. But the stock was last up 3%.

But Pachter also added: “The fact is that nobody really understands what Facebook is worth, and we are all trying to figure it out.”"

Summing Up

It has indeed been a wild ride for Facebook shares this week. The last several weeks, in fact.

The shares need a few days off, so it's a good thing it's Friday.

Where will the share price go from here? Who knows.

But I do know this. It's no place for boring long term investors like me, since "nobody really understands what Facebook is worth."

That's for sure.

Thanks. Bob.