Facebook has been alleged to withhold critical data from its competitors thus crushing them.
Social media giant Facebook Inc (NASDAQ: FB) faces a possible antitrust lawsuit from over 40 US states led by New York City. According to news outlet Reuters, the lawsuit is likely to be focused on the recent acquisitions made by Facebook including Whatsapp and Instagram.
In response to this, New York Attorney General, Letitia James, said they “don’t comment on the details of an ongoing investigation, but as we have said before, we will continue to use every investigative tool at our disposal to determine whether Facebook’s actions stifled competition, reduced choices, or put user data at risk.”
Earlier this week, Forbes reported that Facebook and Google LLC (NASDAQ: GOOG) (NASDAQ: GOOGL) face lawsuit cases filed by the federal and state governments. However, the outcome of the cases will largely be affected by the new appointees at the department of antitrust and also the Attorney General made by the incoming president Joe Biden. As a result, making the case more difficult if the respective departments will not agree on set issues.
“These are hard cases – every one of them. They are not open and shut. They are going to run a lot like the Microsoft case did 20 years ago. In that case, the government won certain issues and lost some others. That could certainly happen here.” said Herbert Hovenkamp, an antitrust expert.
Facebook Lawsuit Cases
Facebook has been alleged to withhold critical data from its competitors thus crushing them. In addition, the states are likely to argue that the company has made acquisitions that have undermined the overall fairness in healthy competition.
However, Facebook CEO Mark Zuckerberg has in the past stated that the company has its subsidiaries independent and thus free from the parent company’s interference. In addition, Zuckerberg at congressional testimonies has argued that the company has other major big tech competitors in the market.
Notably, as the cases keep on emerging from different jurisdictions, Facebook shares remain on the receiving end and likely to shrink in the coming quarters. According to the metrics provided by MarketWatch, Facebook shares are up approximately 40.08% year to date. However, they have dropped 1.24%, and 2.43% in the past three months and one month respectively. Mostly affected by the recent United States presidential election that has a past known history with Facebook shares.
The company has a market valuation of approximately $816.18 billion with 2.4 billion outstanding shares.
With its advertisement sector, a major source of revenue, significantly impacted by the ongoing coronavirus pandemic, Facebook shares remain at higher risks of shrinking in the coming quarters.
Facebook continues to confront election rated censorship controversies. However, it remains a staple in technology and a blue-chip stock with enticing upside.
Our AI systems rated Facebook C in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 6.31% to $263.11 on volume of 47,299,002 vs its 10-day price average of $274.26 and its 22-day price average of $269.78, and is up 25.42% for the year.
Revenue grew by 11.71% in the last fiscal year and grew by 94.27% over the last three fiscal years, Operating Income grew by 19.88% in the last fiscal year and grew by 42.33% over the last three fiscal years, EPS grew by 36.52% in the last fiscal year and grew by 62.85% over the last three fiscal years.
Revenue was $70697.0M in the last fiscal year compared to $40653.0M three years ago, Operating Income was $23986.0M in the last fiscal year compared to $20203.0M three years ago, EPS was $6.43 in the last fiscal year compared to $5.39 three years ago, and ROE was 19.96% in the last year compared to 23.86% three years ago.
Forward 12M Revenue is expected to grow by 16.71% over the next 12 months, and the stock is trading with a Forward 12M P/E of 26.3.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 303.75.
The projected lower bound is: 261.27.
The projected closing price is: 282.51.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 73.0983. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.30. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 63 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -5.670 at 281.850. Volume was 43% below average (neutral) and Bollinger Bands were 34% narrower than normal.
Open High Low Close Volume 286.250 286.650 281.070 281.850 12,921,694
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 277.43 272.04 234.04 Volatility: 31 49 60 Volume: 15,703,727 19,191,652 24,156,850
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FACEBOOK INC A is currently 20.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 1 periods.