Facebook is down 2% today as the market is up by a little over 1% (continuing its lack of correlation), but the stock has recovered nicely from its 2012 doldrums as the lockup-expiration boogeyman proved more bark than bite. Still, the stock has retreated from its highs and one could argue that $FB’s recent run was propelled by short covering. Now $FB’s short interest is at its lowest level since it IPO’d. Going forward, the company will have to prove whether it can deliver earnings, and the stock has to prove that it can rise without short covering.
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