Facebook (NASDAQ:FB) Hit With Two Big Antitrust Lawsuits

Facebook (NASDAQ:FB) Hit With Two Big Antitrust Lawsuits

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

Facebook
Ticker: NASDAQ:FB
Price: $277.92

Facebook News

The suits were filed on Wednesday by the Federal Trade Commission and 48 state attorneys general. Both revolve around Facebook’s acquisitions of the photo-sharing app Instagram and the encrypted messaging app WhatsApp.

The lawsuits allege that Facebook used a strategy of neutralizing competitors before they could threaten the company’s dominance of the social-media market. The suits call out Facebook’s decisions to buy rather than compete with Instagram and WhatsApp, and they allege it imposed “anticompetitive conditions” on software developers.

Both complaints seek a “divestiture of assets” for Facebook — that is, breaking off Instagram and WhatsApp from the social-media giant. Additionally, Facebook could be required to get approval from the government before any mergers or acquisitions in the future.

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Facebook obtained regulatory approval when it bought Instagram in 2012 and WhatsApp in 2014, but lawmakers have recently scrutinized the acquisitions.

The coalition of attorneys general, led by New York Attorney General Letitia James, began an investigation into Facebook in September 2019, and the FTC subsequently joined. Attorneys general from 46 states as well as Washington, DC, and Guam have signed on to the lawsuit. The only states whose attorneys general have not signed on are Alabama, Georgia, South Carolina, and South Dakota.

Facebook said on Wednesday that it was reviewing the complaints and would have “more to say soon.”

“Years after the FTC cleared our acquisitions, the government now wants a do-over with no regard for the impact that precedent would have on the broader business community or the people who choose our products every day,” Facebook said.

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 267.71.

The projected upper bound is: 299.62.

The projected lower bound is: 256.86.

The projected closing price is: 278.24.

Candlesticks

A black body occurred (because prices closed lower 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 20 white candles and 30 black candles for a net of 10 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 42.7107. This is not an overbought or oversold reading. The last signal was a sell 4 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 50.03. 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 67 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 6 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.480 at 277.920. Volume was 100% below average (consolidating) and Bollinger Bands were 52% narrower than normal.

Open    High     Low     Close     Volume
283.660 287.630  271.750 277.920   8,427
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period    50-period     200-period
Close:           281.29       274.11        235.65
Volatility:      31           49            60
Volume:          12,267,403   18,336,536    23,954,234

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 17.9% 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 5 periods.

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