Facebook (NASDAQ:FB) Stock Just Needs to Hang on for a Few Years

Facebook (NASDAQ:FB) Stock Just Needs to Hang on for a Few Years

$FB #Facebook #SocialMedia #USA #Nasdaq #Stocks #Trading #Markets

Facebook
Ticker: NASDAQ:FB
Price: $258.66

Facebook Outlook

More so than many of its rivals, Facebook suffers from scrutiny for the content allowed on its platform. Again, the underlying network features more than 2 billion users. Given the influence that social media has on young people and Americans in general, the controversy over political ads is like ballast for Facebook stock.

That’s not just empty talk. You can see it on the charts. In this year up to Oct. 1, Facebook stock is up 27%. However, it significantly lags its rivals, with TWTR up nearly 45%, whereas SNAP is up almost 60%. Both Facebook’s main rivals have delivered strong messages or protocols regarding materially significant content. In contrast, FB seemingly appears to allow anybody to advertise anything, so long as the price is right.

While the nearer-term picture isn’t particularly favorable to FB relative to the competition, I believe that shares will eventually recover. Interestingly, Facebook stock, TWTR, and SNAP generally trended in a similar fashion up until mid-June, when novel coronavirus cases started to rise again. It’s possible, then, that Facebook lost credibility when it allowed pro-Trump ads downplaying the pandemic to spread on its network.

But this pressure will end soon, whether by next month or in two years’ time. Should former Vice President Joe Biden win, the Trump administration will conclude, and with it, the “fake news” culture, perhaps even entities such as the alt-right. Without their guy in office, the oxygen will be sucked out of right-wing organizations.

The Trump Factor

And with that, the need to propagandize future U.S. elections will decline. Look, we can all agree that there’s no one quite like Donald Trump. The man has said things that would have politically crucified anyone else. Yet here he is, with at least a possibility of winning a second term.

With him out of the picture, Facebook loses a stubborn headwind. All will return to normal.

Plus, even if Trump wins reelection, the propaganda machine will only be incentivized to power up for the 2022 midterm elections. Under this scenario, I just can’t imagine right-wingers getting fired up for Vice President Mike Pence or anyone else who chooses to run for president on the Republican ticket for 2024.

Essentially, the problems facing Facebook stock will go away. It’s like a miracle, it will disappear.

Business Summary

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces.

The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus.

Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers.

Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends.

Messenger allows communicating with people and businesses alike across a range of platforms and devices.

WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms.

Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 280.20.

The projected lower bound is: 238.13.

The projected closing price is: 259.16.

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 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 37.9376. This is not an overbought or oversold reading. The last signal was a sell 2 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 46.78. 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 22 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 54. This is not a topping or bottoming area. The last signal was a buy 9 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 4 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.990 at 258.660. Volume was 100% below average (consolidating) and Bollinger Bands were 27% narrower than normal.

Open     High     Low       Close       Volume
261.780  265.690  258.240   258.660     7,031
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           258.38        264.87         221.45
Volatility:      34            50             57
Volume:          16,639,031    24,482,084     23,203,530

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 16.8% above its 200-period moving average and is in an downward 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 bearish on FB.O and have had this outlook for the last 15 periods.

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