Facebook is currently breaking out above previous levels of resistance. While there are a number of catalysts that may have caused this, the two that seem to be the strongest are:
1) 800 million insider shares were released from lockup and the Facebook’s stock still went up 12% that day. This means that either one of the following or both of the following scenarios occurred: either most of the insiders did not sell or institutional investors stepped in and bought everything and more that they did sell.
2) Even more importantly, Facebook is currently working with Denver based Datalogix to show how social media advertising can reap huge rewards for companies willing to give it try. This is just the partnership needed for Facebook to begin to monetize its 1.1 billion user base. (http://www.sfgate.com/technology/businessinsider/article/Facebook-Is-Quietly-Ramping-Up-A-Product-That-4044380.php)
My quote of the week is “Facebook advertising will be the new television advertising!”