Those outcomes are likely. Although it's also possible that:
* next-quarter results are "less bad" than expected, and the large band of short sellers have to start buying to cover
* insiders feel that the stock is unfairly priced and are willing to hold on until it improves
* Facebook's IPO is a roaring success and generates a rising tide for all internet stocks
I think the first one has the most chance of happening. The stock is heavily shorted right now, any news that's not negative has the chance of sparking a rally.
* next-quarter results are "less bad" than expected, and the large band of short sellers have to start buying to cover
* insiders feel that the stock is unfairly priced and are willing to hold on until it improves
* Facebook's IPO is a roaring success and generates a rising tide for all internet stocks
I think the first one has the most chance of happening. The stock is heavily shorted right now, any news that's not negative has the chance of sparking a rally.