Facebook, Inc. (NASDAQ:FB) continues to pile up impressive revenue and monthly active users

Facebook, Inc. (NASDAQ:FB) continues to pile up impressive revenue and monthly active users

Facebook, Inc. (NASDAQ:FB) continues to pile up impressive revenue and monthly active users

It sounds like a broken record, but Facebook Inc.’s results continue to do just that: break records.

Expect more of the same Wednesday, when the social-networking giant announces third-quarter results.

KeyBanc Capital Markets analyst Andy Hargreaves certainly does. “We expect Facebook to report solid top-line growth with potential for upside to our and consensus revenue estimates,” he said in an Oct. 21 note that maintained an Overweight rating on Facebook shares with a price target of $240 — 28% above its closing price on Friday.

The more Facebook FB, +0.80%  is eviscerated by politicians, regulators, privacy advocates, and consumers, the less its stock or bottom line seem to be impacted. Facebook’s stock is up 43% this year, and it is projected to haul in $17.4 billion in third-quarter sales and earnings of $1.90 a share, according to analysts polled by FactSet.

Ad sales, which accounted for nearly all of Facebook’s $55.8 billion in 2018 revenue, are projected to reach $70.3 billion this year, an increase of 26%. Monthly active users should reach 2.45 billion in the third quarter, up 8% year-over-year — no small feat. And even as Facebook’s core growth inevitably slows, its property Instagram is picking up the slack.

What is all the more remarkable is that this is happening against a backdrop of bad news and embarrassing disclosures that would sink most Fortune 500 companies. The Federal Trade Commission, which fined Facebook a record $5 billion this summer, has launched another investigation into the company’s business practices. Additionally, 47 state attorneys general are examining the company on similar grounds. To top it off, politicians from California to Washington, D.C., are calling for Facebook to be split up.

Despite a brutal quarter in the public eye, the company has managed to extend its tentacles into sports programming with ESPN, a dating app via its Instagram division, and the acquisition of CTRL-Labs, a startup that is developing software and a bracelet, which would let people control computers with their brains.

If there is a downside, some analysts warn, it’s the heavy investments Facebook is making for user privacy and security, which has led to weaker margins. Digital advertising, meanwhile, is unlikely to maintain its torrid pace as large and small businesses more closely scrutinize their ad budgets, GroupM analyst Brian Wieser told MarketWatch in a phone interview.

There is one other stark number that should give Facebook pause.

Americans are spending 26% less time on Facebook than they did two years ago, and they’re increasingly using more social networks as an alternative.

Facebook users spent on average 12:52 hours a month on the platform in 2017; today, that figure is down to 9:28 hours, according to a study by market researcher Active Inc. At the same time, social media users in the U.S. belong to 5.8 different social media networks; by 2023, it should be 10.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 197.96.

The projected lower bound is: 181.06.

The projected closing price is: 189.51.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.7625. This is not an overbought or oversold reading. The last signal was a sell 6 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 56.70. 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 74 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 61. This is not a topping or bottoming area. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 13 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 1.510 at 189.400. Volume was 2% below average (neutral) and Bollinger Bands were 6% narrower than normal.

Open     High      Low     Close     Volume___
187.200 189.530 185.080 189.400 13,657,866
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 187.66 184.29 179.65
Volatility: 38 29 35
Volume: 12,637,813 12,458,510 16,476,285

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.

Summary

FACEBOOK INC A is currently 5.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 8 periods.

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