7.2 C
New York
Friday, December 3, 2021
spot_img

Facebook (NASDAQ:FB) Calls The FTC Antitrust Lawsuit A ‘Do-Over’

$FB #Facebook #SocialMedia #Nasdaq #Stocks #Trading #Metastock

Facebook
Ticker: NASDAQ:FB
Price: $277.12

Facebook News

The Federal Trade Commission and a coalition of attorneys general from 48 states and territories filed two separate antitrust lawsuits against Facebook on Wednesday. The suits target two of Facebook’s major acquisitions: Instagram and WhatsApp.

Discover the PowerTools included in the Award-Winning MetaStock Trading Platform

The Federal Trade Commission and a coalition of attorneys general from 48 states and territories filed two separate antitrust lawsuits against Facebook on Wednesday.

The suits target two of Facebook’s major acquisitions: Instagram and WhatsApp.

Both lawsuits are seeking remedies for the alleged anti-competitive conduct that could result in requiring Facebook to divest the two apps.

The company’s stock was down nearly 2% by Wednesday’s market close.

Facebook pushed back against the lawsuits, calling it “revisionist history” of two major acquisitions the government approved several years ago.

“The most important fact in this case, which the Commission does not mention in its 53-page complaint, is that it cleared these acquisitions years ago,” Facebook’s chief counsel Jennifer Newstead said in a statement.

“The government now wants a do-over, sending a chilling warning to American business that no sale is ever final.”

Newstead later published a lengthy blog post elaborating on Facebook’s opposition to the complaint.

The lawsuits focus primarily on Facebook’s history of acquiring or attempting to acquire smaller companies, alleging it used its market power to quash potential competitors before they could turn into true rivals.

In addition to the WhatsApp and Instagram acquisitions, the FTC’s lawsuit points to Facebook’s previous attempts to buy other social networking companies like Twitter and Snap.

As a result, Facebook’s acquisition strategy harmed competitors and advertisers that rely on the platform to reach massive audiences with few alternatives to choose from, the lawsuits allege.

Business Summary

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.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 267.73.

The projected upper bound is: 298.81.

The projected lower bound is: 256.04.

The projected closing price is: 277.42.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white 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 35.5716. 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 49.36. 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 68 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 0 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.800 at 277.120. Volume was 100% below average (consolidating) and Bollinger Bands were 52% narrower than normal.

Open     High     Low     Close     Volume
275.535  278.730  271.860 277.120   4,656
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period    50-period     200-period
Close:           281.44       274.42        236.09
Volatility:      31           49            60
Volume:          13,539,296   18,437,404    23,971,750

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 17.4% 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 6 periods.

HEFFXhttp://www.heffx.com
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Related Articles

Stay Connected

15,334FansLike
43,300FollowersFollow
2,855SubscribersSubscribe
- Advertisement -spot_img

Latest Articles