Facebook, Inc. (NASDAQ:FB) reports this week amid a flood of negative headlines
From privacy concerns to #fakenews controversies and plenty of stuff in between, Facebook’s been getting pounded by an onslaught of nasty headlines going back to the whole Cambridge Analytica fiasco that blew up last year.
But, hey, some good headlines could be in the offing.
Facebook FB, -1.03% on Wednesday is expected to post the most profitable quarter in its history, boosted by monster numbers from Instagram.
Barclays analyst Ross Sandler has a $180 price target on the stock, which is trading just under $150 a share. He says he believes all the negativity is priced into the stock and investors would be wise to consider hopping aboard.
“The best opportunity in large cap internet is to catch a quality name when sentiment is washed out, valuation is depressed and positioning is offsides (as experienced with Alphabet GOOG, -1.92% and Amazon AMZN, -1.96% heading into 2015),” he wrote. “This could be the setup for Facebook right now.”
Our call of the day has a decidedly different take, however.
Trevor Noren of 13D Research warns “the fall of Facebook has only begun. The platform is broken and neither human nor machine can fix it.”
Even after the stock has lost about a third of its market cap, “it still may prove one of the great shorts of all time,” Noren wrote in a Medium post. “The platform’s content ecosystem is too poisoned for human or machine moderators to cleanse. Users are fleeing in droves, especially in the company’s most valuable markets. Ad buyers are already shifting dollars to competitors’ platforms.”
He added that governments around the world are stepping up to hinder Facebook’s data-collection capabilities and the company is under investigation by the FTC, Justice Dept., SEC, FBI, and several government agencies in Europe.
So what’s the final result?
“The institutionalized failure to see and respond to the platform’s downsides,” Noren warned, “may render Facebook the Digital Age’s Enron — a canonized example of how greed and corruption can fell even the mightiest.”
Facebook shares are leaning lower before the opening bell, with the broader stock market poised to limp into the new week.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 158.39.
The projected lower bound is: 136.79.
The projected closing price is: 147.59.
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 31 white candles and 19 black candles for a net of 12 white 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 51.1620. This is not an overbought or oversold reading. 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 56.62. 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 buy 43 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 40. This is not a topping or bottoming area. The last signal was a sell 4 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 16 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.540 at 147.470. Volume was 40% below average (neutral) and Bollinger Bands were 15% wider than normal.
Open High Low Close Volume___
148.050 148.960 146.210 147.470 15,508,483
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 147.44 139.73 167.08
Volatility: 29 51 48
Volume: 21,062,438 26,002,814 24,834,640
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 11.7% below 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 14 periods.
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