Facebook Inc (NASDAQ:FB) Knew Of Snapchats Struggles Before Public

Facebook Inc (NASDAQ:FB) Knew Of Snapchats Struggles Before Public

Facebook Inc (NASDAQ:FB) Knew Of Snapchats Struggles Before Public

  • Over the weekend the New York Times reported (paywall) that Facebook had stealthily released a photo-sharing app in the Chinese iOS App Store translated as “Colorful Balloons.” The news spread rapidly around English-language media, as it marked the first sign that the company is indeed attempting to make a product specifically for Chinese consumers after years of being shut out of the country.
  • In China, however, response to the news was more muted. The lukewarm reception to the app from both consumers and the Chinese media suggests that Mark Zuckerberg will face an uphill battle if he hopes to make inroads in the country.
  • Snap’s disappointing Q3 earnings report released last week underscores the dire straits in which the company, seven years old, still finds itself selling dollars for ninety cents.
  • For the second sequential quarter, the company has failed to increase the rate of growth and deliver the monetisation performance expected of a fast growth tech company. Quarterly losses grew fourfold year over year with revenue up only 153 per cent on that same period.
  • In the modern history of technology companies, new category winners are most often created due to innovative product combined with the incompetence or complacency of the largest entrenched competitors in the market.

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 160.35.

The projected upper bound is: 174.20.

The projected lower bound is: 162.62.

The projected closing price is: 168.41.

FACEBOOK INC A closed up 0.680 at 168.080. Volume was 100% below average (consolidating) and Bollinger Bands were 14% wider than normal.

Open           High            Low             Close            Volume
167.950      168.820      166.850      168.080       3,919

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period           50-period        200-period
Close:                       169.65                158.64              139.63
Volatility:                20                       23                      22
Volume:                   13,770,225       18,647,148       19,326,570

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 20.4% 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 23 periods.

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 27.3836. This is not an overbought or oversold reading. The last signal was a sell 11 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 58.03. 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 3 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 -55. This is not a topping or bottoming area. The last signal was a sell 8 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 sell 5 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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