Facebook, Inc. (NASDAQ:FB) stock might be back in the doghouse thanks to Zuckerburg’s long-term vision
Despite facing numerous scandals and suffering alongside the broader market in 2018’s end-of-year slump, Facebook (NASDAQ:FB) has managed to power through the chaos, up 27% year-to-date in 2019. But the comeback in Facebook stock hasn’t been without hurdles, and FB may have just been thrown back in the doghouse thanks to CEO Mark Zuckerburg’s jarring pivot from open communication to private messaging.
Today, FB stock is down 1.7% after Zuckerburg hinted at a change to FB’s business that would transition the company to a model more closely resembling Tencent’s (OTCMKTS:TCEHY) WeChat, and possibly damaging FB’s current business model in the process.
Cultivating a more privacy-focused Facebook Inc is a response to privacy concerns that were amplified last year after the Cambridge Analytica scandal and additional scrutiny over its questionable use of user data spooked many FB stock investors.
Specifically, a more privacy-minded version of Facebook would cover everything from Facebook’s public space to a private space — or more eloquently titled, “town square” and “living room.”
The town square would feature the traditional News Feed and other familiar, open social features like Facebook groups, while the living room would mainly be used for messaging and other, more private uses.
According to Business Insider, the “tectonic shift for Facebook’s business model” could affect its revenue, which primarily comes from advertising. Specifically:
“End-to-end encryption — along with other plans to give people more control over their data such as a clear history too and disappearing posts — would make it harder for Facebook to gather the user information on which its business model relies.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 180.85.
The projected lower bound is: 159.17.
The projected closing price is: 170.01.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 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 83.0282. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 61.59. 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 19 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 1 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -3.380 at 169.130. Volume was 25% below average (neutral) and Bollinger Bands were 46% narrower than normal.
Open High Low Close Volume___
171.500 171.740 167.610 169.130 18,306,504
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 165.74 153.70 165.76
Volatility: 28 46 49
Volume: 17,020,988 21,361,366 24,219,260
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 2.0% above 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 2 periods.