Facebook, Inc. (NASDAQ:FB) Settles with Advertisers

Facebook, Inc. (NASDAQ:FB) Settles with Advertisers

Facebook, Inc. (NASDAQ:FB) Settles with Advertisers

Facebook FB has agreed to pay $40 million to settle a case with advertisers that it maintains is “without merit.”

Advertisers claim that Facebook moderated viewing metrics that made them spend more on the platform. But as it turns out, the problem related to the way viewing metrics were recorded in the first place, and that was actually known to everyone. Facebook has added that it related to videos advertisers were providing free, on which Facebook didn’t directly earn anything.

Facebook’s system recorded a view only when it was longer than 3 seconds. While this left out some views, it appeared that average viewing times were longer than they actually were. Advertisers claimed that this led then to misread the popularity of their content, which made them increase their spending on the platform. And naturally, when they increased spending, Facebook benefited.

Facebook says that although it was not at fault, settling was a better way to finally put this thing behind it (the case related to what happened between 2015 and 2016, Facebook announced that this thing was happening in 2016 and was sued in October of that year). The company maintains that it was not aware of the happening a year before its public announcement, as claimed by some based on the fact that the watch time increased by up to 900% in some cases.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 185.17.

The projected upper bound is: 188.48.

The projected lower bound is: 170.53.

The projected closing price is: 179.51.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 73.6200. This is not an overbought or oversold reading. The last signal was a sell 1 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 45.50. 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 61 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 -18. This is not a topping or bottoming area. The last signal was a buy 4 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 0 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.100 at 179.850. Volume was 50% below average (consolidating)(neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
179.160 180.720 177.940 179.850 7,648,874
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 178.28 184.31 176.41
Volatility: 25 31 37
Volume: 13,001,067 13,305,451 17,276,992

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 2.0% above its 200-period moving average and is in an downward trend. Volatility is low 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 bearish on FB.O and have had this outlook for the last 7 periods.

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