We are suddenly seeing an increase of bearish FB news coming out of the media leading up to earnings this week.

Now that the stock has found a ceiling it seems that investors are finding more reasons to sell, and the article below could be as good a reason as any.

Important points from the article:

Last year, the original concern for Facebook was that more people were switching to their mobile site and it wasn’t clear if the company was going to be able to serve ads as effectively in mobile-formatted browsers.  Facebook invalidated these concerns with their last earnings release as mobile revenue increased.  Now the new concern seems to be, after successfully  leading the mobile users to the advertiser’s waters, will these users drink (i.e. click the buy-now button)?

When Facebook users spend 6 hours a day catching up with friends, it appears that they are loathe to do anything else, including shop.

 

[read full screen]