Facebook, Inc. (NASDAQ:FB) most bearish it’s been since 2013
Facebook stock is now about 27 percent lower than its July all-time high, and Street sentiment — as measured by the number of hold and sell ratings — is the most bearish it’s been since 2013, based on FactSet estimates.
While growing skepticism can sometimes be a good contrarian indicator, Strategic Wealth Partners’ Mark Tepper says to stay away from the stock, saying its ad revenue is facing a hit.
Teppers said Facebook was a valuable advertising platform because “they knew so much about their users and could really zero in on their ideal customers. But all that changed. Demographics are gone and their platform has been diluted.”
He said Alphabet is a better stock to own since the company still provides highly targeted ads that are more valuable to advertisers.
“With Google, ads are being shown to people who are actually searching for something. So that makes those ads more relevant. And for advertisers, the cost per click might be lower on Facebook, but the advertisers will very quickly learn that what really matters most is their cost per new customer, and that’s going to be better on Google, so I prefer Google here,” he said.
Over the last year, shares of Facebook have slid about 13 percent, while Alphabet has gained nearly 5 percent.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 172.12.
The projected lower bound is: 151.97.
The projected closing price is: 162.04.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 16.8322. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 44.98. 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 27 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 -97. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 1.100 at 161.570. Volume was 9% above average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
161.480 163.820 160.820 161.570 25,611,488
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 168.68 159.35 165.03
Volatility: 30 41 49
Volume: 21,433,462 20,449,076 24,456,088
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 2.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 0 periods.