Facebook launched a PR assault against Apple on Wednesday, proclaiming that the iPhone maker’s upcoming changes to its mobile operating system will hurt small businesses’ ability to target advertising and app makers’ ability to offer free content.
When Apple AAPL, -0.05% updates iOS 14 on mobile devices early next year, it will require all apps to show a prompt allowing users to opt out of targeted advertising. People opting out of tracking will hinder Facebook’s FB, +0.04% ability to collect information it could use to personalize ads, and the company’s attack Wednesday included publicly standing with “Fortnite” owner Epic Games Inc. in its antitrust suit against Apple.
Dan Levy, Facebook vice president for ads and business products, said Facebook “fundamentally disagrees” with Apple’s stance that “personalized ads are inherently inconsistent with privacy.” He added that Facebook and others in the industry “can protect privacy while using personalized data.”
Levy also said Apple’s moves are “anticompetitive,” echoing antitrust sentiment against Big Tech, and said Apple is trying to “go back 20 to 30 years” to a time before targeted advertising.
“We welcome in-app advertising and are not prohibiting tracking,” Apple said in a statement. “We’re simply requiring each app to obtain explicit user consent.”
Facebook also said it intends to support Epic Games’ lawsuit against Apple. The lawsuit accuses Apple of anticompetitive behavior after it removed Fortnite from the App Store because Epic offered a way to pay for in-app purchases that bypassed the App Store.
Apple, which has been criticized for the 30% cut it takes from app developers, last month launched a program that slashes commission rates in half for businesses that make under $1 million a year.
The company expected companies like Facebook to fight its upcoming update.
Craig Federighi, Apple’s head of software engineering, said at a privacy conference in Europe last week that “it’s already clear that some companies are going to do everything they can to stop the App Tracking Transparency feature I described earlier — or any innovation like it — and to maintain their unfettered access to people’s data.”
Apple and Facebook have sniped at each other for years. Apple Chief Executive Tim Cook has pointedly said his company doesn’t “monetize” its users through advertising. Facebook CEO Mark Zuckerberg has hit back by saying that his company does not charge its users, while Apple’s products are sold at a premium.
Facebook faces its own antitrust scrutiny, with the Federal Trade Commission and 48 attorneys general signing on to an antitrust suit against the company last week. Alphabet Inc.’s GOOGL, -0.22% GOOG, -0.27% Google also faces federal and state antitrust charges, and Amazon.com Inc. AMZN, +2.40% is being investigated for potentially anticompetitive actions by the European Union and reportedly the U.S.
Facebook shares gained slightly Wednesday, while Apple declined slightly. Apple stock has gained 73.6% so far this year, making it worth more than $2 trillion, while Facebook shares have increased 34.4%. The S&P 500 index has gained 14.4% in that time.
Facebook continues to confront election rated censorship controversies. However, it remains a staple in technology and a blue-chip stock with enticing upside.
Our AI systems rated Facebook C in Technicals, B in Growth, B in Low Volatility Momentum, and B in Quality Value. The stock closed down 6.31% to $263.11 on volume of 47,299,002 vs its 10-day price average of $274.26 and its 22-day price average of $269.78, and is up 25.42% for the year.
Revenue grew by 11.71% in the last fiscal year and grew by 94.27% over the last three fiscal years, Operating Income grew by 19.88% in the last fiscal year and grew by 42.33% over the last three fiscal years, EPS grew by 36.52% in the last fiscal year and grew by 62.85% over the last three fiscal years.
Revenue was $70697.0M in the last fiscal year compared to $40653.0M three years ago, Operating Income was $23986.0M in the last fiscal year compared to $20203.0M three years ago, EPS was $6.43 in the last fiscal year compared to $5.39 three years ago, and ROE was 19.96% in the last year compared to 23.86% three years ago.
Forward 12M Revenue is expected to grow by 16.71% over the next 12 months, and the stock is trading with a Forward 12M P/E of 26.3.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 268.41.
The projected upper bound is: 296.92.
The projected lower bound is: 255.10.
The projected closing price is: 276.01.
A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 41.4344. 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 48.48. 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 72 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 sell 4 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.120 at 275.670. Volume was 24% below average (neutral) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume 274.760 277.860 272.510 275.670 15,884,999
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 278.45 275.40 237.75 Volatility: 22 48 59 Volume: 16,344,484 18,893,336 23,882,322
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 15.9% 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 3 periods.
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