Facebook, Inc. (NASDAQ:FB) User Engagement Held Steady

Facebook, Inc. (NASDAQ:FB) User Engagement Held Steady

Facebook, Inc. (NASDAQ:FB) User Engagement Held Steady

Facebook (FB) reported fourth-quarter earnings after the market close Wednesday that topped Wall Street estimates, driving Facebook stock sharply higher in extended trading.

The social networking giant reported adjusted earnings of $2.38 per share and revenue of $16.9 billion. Wall Street analysts expected $2.19 per share on revenue of $16.4 billion.

Facebook stock was up 7.7%, near 162.40, during after-hours trading on the stock market today.

Heading into the fourth quarter, a concern was that the various data-privacy abuses and investigations would damage user growth and engagement. That did not appear to be the case.

The company ended the quarter with 1.52 billion daily active users, up 9% from the year-ago period. Monthly active users were 2.32 billion, also up 9%.

User Engagement Held Steady

“At first glance, no change to our positive thesis as overall results exceeded expectations, consistent with our preview and intra-quarter checks,” Baird analyst Colin Sebastian wrote in a note to clients. “Engagement appears stable, as the daily and monthly active user ratio held steady.”

Mobile advertising revenue represented approximately 93% of total ad revenue for the fourth quarter, up from 89% a year ago.

Facebook now estimates that around 2.7 billion people use Facebook or its Instagram, WhatsApp, or Messenger each month. And more than 2 billion people use at least one of the four each day.

“We’ve fundamentally changed how we run our company to focus on the biggest social issues, and we’re investing more to build new and inspiring ways for people to connect,” Facebook Chief Executive Mark Zuckerberg said.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 161.71.

The projected lower bound is: 139.37.

The projected closing price is: 150.54.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 58.6667. This is not an overbought or oversold reading. The last signal was a sell 9 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 59.15. 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 45 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 74. This is not a topping or bottoming area. The last signal was a sell 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 6.230 at 150.420. Volume was 71% above average (neutral) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
146.220 150.950 145.695 150.420 44,613,240

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 147.47 139.89 166.91
Volatility: 38 52 48
Volume: 22,828,048 26,503,516 24,854,598

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 9.9% 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 16 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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