Facebook Inc (FB)’s In The High 70 Clouds, At A Record Altitude

Facebook Inc (NASDAQ:FB) hit the $79.71 value in its last trading day, announcement brought by FOX, registering a new all-time high, but the numbers began falling slowly shortly after down to the closing $79.04. Paradoxically, the share price fell some 0.2% in the course of the day, as if the stock didn’t have enough muscle to keep up the pace. A more plausible alternative is the fact that many saw opportunities for some on-the-edge transactions.

Facebook Inc (NASDAQ:FB)’s been traded for almost two years and a half, which is a relatively short period of time to have enough statistical information for proper inferences regarding price fluctuations. However, reaching this new record value might mean that people expect a subsequent fall. Taking the example of two previous months of October, there’s a slight decrease from $21.99 to $21.11 in 2012, roughly 4%, and a decline from $50.42 to $50.2, around 0.5%, for 2013.

Obviously, it doesn’t mean that Facebook Inc (NASDAQ:FB) is going to disappoint long-exposure to its stock. In fact, we might witness the first positive month of October so far. This little record is not the endpoint of the story. It works as just a checkpoint to be reached and as for investors’ concern about the share price the sky should be the limit.

Interestingly, Facebook Inc (NASDAQ:FB) has little competition in the social networking division. That is, there are practically no companies that would contest the tech heavyweight by providing analogous services. The only company so far is Ello, which is available only with an invite. It plans to hit where it hurts the most with their slogan “We believe a social network can be a tool for empowerment. Not a tool to deceive, coerce and manipulate — but a place to connect, create and celebrate life”.

It’s unlikely that Facebook Inc (NASDAQ:FB) will suffer much from such a small competitor, however, if the latter manages to reduce advertisements on social websites while maintaining profitability, consumers will definitely be better off, also our digital walls will get cleaner.

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