Facebook, Inc. (NASDAQ:FB) Zuckerberg’s Control

Facebook, Inc. (NASDAQ:FB) Zuckerberg’s Control

Facebook, Inc. (NASDAQ:FB) Zuckerberg’s Control

Zuckerberg owns less than 1 percent of Facebook’s class A stock, but he controls more than 80 percent of the company’s class B shares, which have special voting rights. That gives him almost 60 percent of the vote when the company and board make essential decisions.

For all practical purposes, “Mark is Facebook and Facebook is Mark,” said Ashkan Soltani, a former FTC chief technologist, noting that many of the statements about the company’s practices come from Zuckerberg himself. “The key factor here is that Zuckerberg still has control over the company and the board.”

Jeff Chester, executive director of the Center for Digital Democracy, said just giving the board oversight over privacy isn’t enough. He called for an independent board with no company representatives that approve the company’s data moves for five years.

“Mark Zuckerberg cannot be trusted to really do anything to protect the public,” Chester said.

FTC Chairman Joe Simons is under pressure to craft a strict settlement following a series of privacy scandals at the company, most notably the disclosure that now-defunct consulting firm Cambridge Analytica obtained data on tens of millions of the site’s users.

Facebook’s announcement of the expected cost of the settlement, which would be a record in a U.S. privacy case, is already being criticized for not going far enough. Senator Richard Blumenthal of Connecticut and Representative David Cicilline of Rhode Island, both Democrats, called it a “slap on the wrist.”

Facebook didn’t disclose any other details about the FTC settlement, including whether it would impose restrictions on the company’s business practices. Any agreement would need the support of at least three of the five FTC commissioners.

Sarah Miller, co-chair of Freedom From Facebook, a Washington-based group that wants to see the company broken up, said that if the FTC puts forward a weak settlement she’d like to see Congress cut back the agency’s funding in favor of state attorneys general, which are also conducting probes of Facebook’s handling of user data.

“A lot of people now are seeing this consent decree investigation as a fundamental test of the agency’s usefulness,” Miller said.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 176.12.

The projected upper bound is: 201.11.

The projected lower bound is: 185.15.

The projected closing price is: 193.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 55.4172. This is not an overbought or oversold reading. The last signal was a sell 5 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 71.87. This is where it usually tops. 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 6 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 65. This is not a topping or bottoming area. The last signal was a sell 1 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 21 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.500 at 192.530. Volume was 35% below average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
193.000 194.000 189.750 192.530 13,209,452

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

Moving Averages: 10-period 50-period 200-period
Close: 188.46 173.35 161.93
Volatility: 36 29 49
Volume: 23,085,606 17,747,244 24,409,106

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 18.9% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 21 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition.

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