WHY FACEBOOK, ALIBABA, JD.COM STOCK KEEP FALLING

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Today i want to talk about three stocks that have been absolutely hammered over the past few days some of you guys out there own i want to explain why these particular stocks are down so much okay so one we’re going to talk about jd it’s kind of the most obvious going to the least obvious then we’ll talk about facebook then we’ll talk about alibaba last okay and

Kind of why these stocks continued to struggle out there while this markets been pretty good lately okay we can’t say all the markets been trashed the markets been down huge that’s why these stocks are down no that’s really not okay because if we look at some stocks like apple apple’s up over 17% in the past three months 17% of the past three months amazon’s up over

17% in the last three months so we’ve seen the two big dogs of the stock market both them have around trillion-dollar market caps apples over a trillion amazon hit a trillion yesterday i think it’s just slightly under right now these two have been performing phenomenal while these stocks these are the big ones i specifically you know facebook and alibaba them isn’t

Struggling a lot now i also want to just kind of mention $0.10 which is the nether big company out china that’s sound about 26 percent in the past three months okay so alibaba and what would apple and amazon represents the united states of america 10 cent and alibaba represent that to china they’re the big dog companies over there okay so let’s get into all these

If we look at jd okay on the two day chart this one’s down 16 percent 16 percent in two trading days guys that’s pretty rough okay over the past three months this one’s down 35 percent if we look at it four more the three-month span a lot of that has to do with just simple fact that the tariffs the trade war all this type of talk it just scared a lot of investors

Out of a lot of chinese stocks you could say for wrong or for right maybe just people are clueless out there they shouldn’t be selling off these chinese stocks but for whatever reason people have gotten scared the stock market doesn’t like uncertainty and when you have uncertainty coming of the stock market in two particular sectors like chinese stocks in general

Right which have a lot of american money and when they see the trade war and all these tensions and tariffs and blah blah blah it scares people out of a lot of these stocks okay which is why a stock like jd has been hurt you know severely value 35 percent in three months pay that is rough man that it’s a rough downward move there okay sixteen percent in two days

Why is that that’s because the ceo situation okay i spoke on this a you know yeah i was like two or three days ago all right the gentlemen the ceo there had been arrested it could be completely false okay it could have been a completely mistaken identity we don’t know all the specifics around it as of right now all we know is he’s been released for my understanding

He’s back in china now but the end of the day okay and a lot of people are like oh this doesn’t affect the company at all you couldn’t somewhat be right on that okay but as i spoke about in that video the the worst thing for jd is any bad publicity out there any type of bad press this as was already a stock that has been struggling a lot okay it’s not like this

Is a stock that’s up massively that is performing phenomenally well no this is a stock that has been performing horribly okay and you know i pointed out in you know since this one went ipo it was up you know like twenty percent or 25 percent or something now you take away that 16 percent it’s even up less than that since the company ipo two years ago like four or

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Five years ago okay this one hasn’t done much so when i looked at jd i just said this is a company right now that is is you know we can’t have any more bad press around it in this whole situation you know it’s just another black eye in this company’s the dealio okay which is why this one has dropped another 16 percent in two days fan last 48 hours this one’s down 16

Percent guys that one’s really rough so that is why jd is down okay deal you are the trade tariffs and then you have the ceo situation it’s just boom it’s just it’s just a nasty stock right now okay well see where jd goes over time you know you could make an argument that you know they have a great opportunity in front themselves in next five or ten years and all those

Cut is a company that really hasn’t shown much profitability to this date they may be able to be immensely profitable you know three four or five years out but we’re you know time remains to be seen their facebook stock what has happened to facebook why is this one continue to fall okay on the three month it is down around 12 percent is down much more than that if

You look at you know where was that rate before earnings and then where it crashed down to but the three-month charts right down around 12 percent the two day chart is down five percent another five percent just in the past two trading days okay what is going on with facebook well one was the earnings came out the ernie’s came out and what that earnings period

Ended up doing is it woke it from a stock that it was a growth stock you know massive growth stock that you know a lot of growth investors want it to be in facebook – now it’s a value investor stock okay and whenever you had this situation it’s never a good stock environment for that particular stock okay because what you have is you have major growth investors

Who love the huge growth in a stock like this which is facebook had been showing massive growth in across the board for years and years nelson some of that growth has slowed they’re still expected to grow very nicely on profits revenues for years to come in the future okay never mind if you look at the instagram metrics and some of that okay this should still grow

Phenomenally in the future but right now you know the growth investors are saying we don’t want to be in that anymore because it doesn’t look like they’re gonna have that parabolic growth anymore they don’t have quite that story that gets everybody laid out anymore and so now people like myself have begun to step in the stock over the past month and have started

To buy shares the value investors okay there’s haven’t been enough of us to buy shares in the short term here to push the stock up there have been more growth investors selling out then value investors buying it okay which is why a stock like this has fallen over 12% in the past three months the two day charts down over 5% a lot of that honestly has to do with the

The fact that trump has you know begun to speak out against some of these these big powerful players in the ad market google he believes that you know some of them suppress conservative views facebook you know a lot of these different platforms as far as that goes so he’s coming after them and that’s just a you know more negativity there across the board okay so

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When you have this stock moving from growth investor stock to now value investor stock that’s a big change up this happens to a lot of companies across the board okay i remember i remember when apple went through this apple was just you know putting up insane numbers for a long time and then also the numbers started slowing and you know apple stock had a rough

Time for a little while there and then also in the value investors stepped in and you know apples been in up and ups ever since okay but that’s the deal with facebook there so if we can get the situation cleared up where you know trump can stop attacking them and you know sessions came out and he’s you know what’s going on here you guys suppression is suppressing

Conservative views which could be sure when it does sometimes sometimes seen like that i’d have no clue if it’s factual or not but it does seem like that sometimes until that’s cleared up it’s just a kind of a dark cloud over on top of slowing growth which are still gonna be phenomenal for years to come in the future okay so that’s what’s going on there with facebook

Now let’s talk about alibaba you could you could group $0.10 into this as well alibaba in $0.10 they kind of run together in in positive x or negative x they kind of you don’t flow very similarly but alibaba what’s going on here with alibaba all right and then i want to explain kind of what’s going on like it like there’s an underlying thing that’s going on right

Here that’s making all these moves accelerating i’ll explain that in just a second okay but alibaba what’s going on with this one 21% down this is very similar jd it just had the whole negative tariffs the trade war everybody’s freaking out over that okay that’s what’s taking it down over the past few months in the last two days what has happened well this one has

Unfortunately been brought down because of jd because the jd situation these stocks end up trading in baskets okay so whatever ends up happening is alibaba $0.10 baidu jd a lot of these different players they all get vascular together as the big chinese companies all right meaning if what did that moves up in a huge way it actually lifts all leather all the other

Chinese stocks a little bit okay if one of them gets hurt in a massive weight actually brings down all the chinese stocks and what you have is jd having an awful time right now down 16 percent last 48 hours and this ends up sending down $0.10 even more sending down alibaba because these stocks trading baskets okay and it brings down everything across the board so

That is what it’s kind of happened here with alibaba in $0.10 there all right now let’s get into kind of the underlying thing that’s going on in the stock market and i see this all the time i see this all the time in big tech it’s something i start to notice and it’s what i call rotation money rotation money is the term i i’ve called it here okay and what this

Means is you have you know certain stocks huge tech stocks alright and what you’ll have sometimes is hot money rotate out of certain stocks that aren’t performing very well and it makes it a downside even bigger and you had that money rotate to some of the stocks and the big tech stocks that are doing well and that ends pushing up those stock values even more and

More i’ve seen this over the years happen with apple and google’s a ton of times ok but also begin to get a hudson you know become a hut stock and apple would be settled off big-time and the move would just be getting bigger and a lot of apple money would rotate toward google and then also an apple time would be coming and also money would rotate out of google it

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Would exacerbate the down mode for with google it would make apples move up or bigger and bigger ok which is exactly what we have seen here with apple and amazon we’ve seen a lot of money rotating from facebook from you know a lot of these big chinese names and chinese tech names we’ve seen a lot of money rotating out of those because those weren’t winner there there

Are winners here in the short term it makes their moves exacerbate it to the downside which you get bigger and bigger downward moves in what it really should be and you end up getting bigger and bigger upside moves to some of the hot stocks ok it’s rotation money moves i call it it happens in a big tech all the time one stock will start falling for whatever reason

Bad earnings on analysts came out and said something by the way an analyst came out and downgraded facebook yesterday ok and that freaked everybody out if the stock ends up moving down and then people who do big fund managers i shouldn’t say people big fund managers say dude i want to rotate some money out of some of these names to the ones that are hot right now

Are the ones that can’t miss because a stock right apple and amazon it’s almost every day these stocks go up ok it like literally i keep track of these every single day one because my wife has a huge position and apple amazon i keep track of just even though we don’t have a position that i just keep track of it to keep track of it’s interesting stock in almost every

Single day it seems like apple and amazon are up they just move up and up and up and up and it’s like how do these stocks keep going up so money rotate now a lot of the other big tech names into these two tech names and sooner or later guess what the rotation is gonna happen the other way ok we don’t know when that will be but sooner or later also money will start

To rotate out of apple out of the amazon and it’ll start to rotate back into some of these other tech names those will begin to get the hut the the hutton names on them ok it happens constantly in big tech i’ve seen that happen for years and years and years and years it’ll continue to happen in the future that is why these stocks are down i want to hear your guy’s

Opinion on this down now in that comment section do you own any of these stocks mentioned do you own jadeed your own facebook do you own alibaba do you own apple tencent any of these talks i would love to hear from you guys in that comment section if you own any of these stocks mentioned here today or if you’re planning on buying any if you already own a position

You want to load up more shares like i would love to hear from you guys also like if you had to put all your money for the next 10 years at any of these stocks mention what stock would it be i would love to hear from you guys in that comment section if you enjoyed this video hit a thumbs up if you learned a lot today thank you for watching have a great day

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WHY FACEBOOK, ALIBABA, JD.COM STOCK KEEP FALLING By Financial Education

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