Facebook (FB) slipped 0.97% as shares broke a four-day winning streak that lifted the social network’s stock by as much as 20%, giving the company much needed momentum after its rocky IPO debut.
FB fell 31 cents (or 1%) to $31.60 on Wednesday, a small dip that would do very little to prevent the rebound that investors are welcoming as a sign that the initial pressure on the stock has gone away.
The good news kept coming for the social network as analysts predicted that traditional “buy-and-hold” investors, those who plan for the long run as opposed to being driven by spur of the moment decisions, are “warming to the shares.”
This, in turn, helps to soften the relatively negative media coverage Facebook’s stock has received since its botched IPO, potentially reducing bad perceptions and contributing to ease investors and advisers.
Though the FB rebound has been attributed to the company’s recent business announcements and acquisitions, analysts say part of the spike is “a natural bounce” that occurs when the stock “has stretched its streak of higher intraday lows.” Some analysts have even predicted that the stock could reach $48 within the next few days.
However, it will all come down to next week and Wall Street will be allowed to start offering input on Facebook’s stock as the “quiet period” mandated by the Securities and Exchange Commission – 40 calendar days after the IPO – comes to an end.
Nonetheless, not all is good news for the social network. A new study from market research firm YPulse found that Facebook continues to struggle to attract and retain a younger demographic, as teens have started to flock to other sites such as Foursquare, Tumblr, and Pinterest; a flag the social network needs to address in the long run if it wants to demonstrate investors it’s able to keep a sustainable revenue model.