Jeffrey Gundlach on Facebook

Billionaire investor Jeffrey Gundlach noted that rising commodity and crude oil prices are helping his bets on energy stocks. At the 2018 Sohn Investment Conference, he shared his concerns about the rising bond yield, which could accelerate the Federal Reserve’s rate hike process.

Why Jeffrey Gundlach Thinks Shorting Facebook Could Be Profitable

Gundlach also shared his shorting bets at the conference and believes that shorting Facebook (FB) could be profitable for investors. He disclosed that he has taken a short position in Facebook.

Gundlach noted, “Nothing new ever occurs in the business of speculating. What’s happened in the past will happen again and again and again.” He continued, “There’s good and bad going on in the world. Interpretations matter.”

According to Gundlach, Facebook’s recent data breach issue has diminished its perception among consumers and investors. Gundlach added that the Cambridge Analytica data breach was a major problem for the company.

Facebook’s performance

On April 25, Facebook’s (FB) stock price fell 12.0% on a year-to-date basis. FB stock fell ~10.4% in March following the news about the data breach.

The Technology Select Sector SPDR ETF (XLK) fell 3.7% in March, and the S&P 500 Index (SPY) fell 2.7% during the month as concerns about a global trade war intensified.

For another market perspective, please read Why Morgan Stanley Believes the Bull Market Will End Soon.

Latest articles

Apple Arcade (AAPL) is a subscription gaming service that was unveiled at Apple’s annual event last week. The service will launch on September 19.

Cannabis legalization is gaining traction not only in the US but also globally. The third presidential Democratic debate was held on September 12.

Google has agreed to make a one-time settlement of over $945 million euros to the French ministry. The ministry accused Google of evading taxes.

In Q4 2018, legendary investor George Soros sold all his holding in Apple (AAPL). In Q3 2018, Apple represented around 0.2% of his total portfolio.

Jim Chanos, the founder and president of Kynikos Associates, is a long-time short-seller of Tesla stock. Tesla stock has fallen 17.5% in the last year.

Despite Aurora Cannabis's subdued results, Cowen initiated coverage on five cannabis stocks: CRLBF, GTBIF, CURLF, MMNFF, and ACRGF.