Facebook, Inc. (NASDAQ:FB) says WhatsApp will start making money next year

Facebook, Inc. (NASDAQ:FB) says WhatsApp will start making money next year

Facebook, Inc. (NASDAQ:FB) says WhatsApp will start making money next year

It’s now been over a year since Facebook (NASDAQ:FB) subsidiary WhatsApp started hiring for a “product manager for monetization,” which came a few months before the popular messaging service officially launched WhatsApp Business. The social networking titan has been working on a new monetization model for WhatsApp for several years, after eliminating the paltry $1-per-year subscription fee in 2016 shortly after acquiring the start-up.

Instead, Facebook wants to monetize WhatsApp (and Messenger) by helping businesses connect directly with consumers, and it just made a big move in that direction.

Business customers will foot the bill, paying anywhere from 0.5 cents to 9 cents per message sent, depending on the geographical market. The great irony there is that WhatsApp’s popularity was largely propelled by being incredibly affordable, making the service a very compelling alternative to traditional SMS text messaging in emerging markets, yet now the company’s messaging rates will be significantly more expensive than SMS rates, which are usually less than 1 cent per SMS message. Of course, the big difference is that only business customers will have to pay, while the service remains free for users.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 190.46.

The projected lower bound is: 152.32.

The projected closing price is: 171.39.

Candlesticks

A black body occurred (because prices closed lower 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 30 white candles and 20 black candles for a net of 10 white candles.

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 13.2637. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 29.04. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 4 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 -98. This is not a topping or bottoming area. The last signal was a buy 0 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 4 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.930 at 171.650. Volume was 20% above average (neutral) and Bollinger Bands were 145% wider than normal.

Open High Low Close Volume___
173.930 175.080 170.900 171.650 34,042,108

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 192.76 195.57 181.54
Volatility: 123 62 44
Volume: 50,694,192 23,753,378 25,492,384

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 5.5% 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 3 periods. Our momentum oscillator is currently indicating that FB.O is currently in an oversold condition.

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