Wallstreet investors seems to be ignoring the hearings in DC on Facebook as CEO Mark Zuckerburg took a beating from both Republicans and Democrats this week at hearings. Facebook shares are trading at a discount of 2.1% to a monthly maximum, reflecting an uptrend since early October. Since the beginning of the year, the emitter’s quotes strengthened by 28%. On October 30, after the market closes, the company will report for Q3 2019. The Wall Street expects another strong quarter, with revenue up by 26% (YoY) to USD 17.3 billion and net earnings per share up by 8% (YoY) to USD$ 1.9.
During the previous week, Facebook shares dropped by 2.11%. S&P500 went up by 0.40% within the same period.
Support and resistance
The emitter is trading within the flat market. The technical picture is uncertain. At the moment, the following key levels of support and resistance can be distinguished: at 183.00 and 191.000, respectively. #FB shares have the potential for decline.
Indicators don’t give a clear signal: the price has crossed MA(50) and MA(200), and MACD histogram is approaching zero line. Positions are to be opened from key levels.
Comparing the company’s multiplier with its competitors, we can say that #FB shares are neutral.
Support levels: 183.00, 173.00, 164.00.
Resistance levels: 191.00, 198.00, 207.00.
If the price consolidates below the support level of 183.00, #FB quotes may decline. Potential profits should be locked in by orders at 178.00, 174.00, and 170.00. Stop loss – 188.00.
If the price consolidates above the level of 191.00, one may consider buying #FB. The moving potential is aimed at the area of 200.00–205.00. Stop loss – 186.00.
Implementation period: 3 days.
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company’s products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics from Michigan University.