Facebook shares (NASDAQ:FB) closed yesterday’s trading session at a two-month low, reflecting a 10% downtrend from the January 52-week high. The company predicts a slowdown in revenue growth in the current quarter amid stricter rules for regulating confidentiality and advertising targeting.
The “advertising problem” could be a serious issue for Facebook as it tries to balance user experience to increase revenue. There has been a decrease in young users in the past few years.
However, investors should consider buying Facebook stock on a dip. It is unlikely that it will fall out of its number 1 spot for social media anytime soon.
Over the past week, Facebook shares fell by 6.28%. The S&P 500 index for the same period decreased by 4.57%.
Stock Market Today –
- Major Averages Fall More Than 3% on the Day
- SPY Closes Below First Support
- Sector Rotation Favors Defensives and Bond Proxies
- Relative Trend in Technology Remains Bullish but Extended
- Futures Point to a Higher Open Today
The coronavirus is “very much under control” in the U.S.; President Donald Trump tweeted on Monday after the stock market’s SPX, -3.35% close.
Trump also said the stock market, which dropped Monday, was “starting to look very good to me!” Regarding the COVID-19 outbreak, the president said from India that his administration has been “in contact with everyone and all relevant countries.”
Facebook Stock Support and Resistance
Facebook stock shows negative technical signals and share prices have renewed recent lows. At the moment, the Facebook shares are consolidating near the support level of 198.00. The level of 207.00 acts as a “mirror” resistance. There is a potential for further decline. Indicators do not give accurate signals: the price crossed MA (200); the MACD histogram has started to decline.
Resistance levels: 207.00
Support levels: 198.00
Facebook Stock Wall Street Price Recommendations
Feb-11-20 Downgrade Pivotal Research Group Hold → Sell $215 → $180
Jan-30-20 Downgrade Pivotal Research Group Buy → Hold $245 → $215
Jan-29-20 Upgrade Raymond James Outperform → Strong Buy $230 → $270
Jan-27-20 Reiterated Stifel Buy $240 → $250
Jan-10-20 Initiated Bernstein Outperform
Dec-30-19 Reiterated Aegis Capital Buy $235 → $300
Dec-18-19 Reiterated Deutsche Bank Buy $260 → $270
Dec-05-19 Upgrade Stifel Hold → Buy
Dec-05-19 Initiated HSBC Securities Reduce
Dec-03-19 Initiated Piper Jaffray Overweight
Nov-05-19 Upgrade Daiwa Securities Outperform → Buy $235 → $250
Oct-31-19 Reiterated RBC Capital Mkts Outperform $260 → $270
Oct-28-19 Resumed Stifel Hold $180 → $205
Aug-02-19 Resumed MKM Partners Buy $190 → $245
Jul-25-19 Reiterated Pivotal Research Group Buy $220 → $225
Jul-25-19 Reiterated Monness Crespi & Hardt Buy $250 → $260
Jun-27-19 Reiterated Deutsche Bank Buy $220 → $230
Jun-11-19 Upgrade MoffettNathanson Neutral → Buy $210
May-29-19 Initiated Pivotal Research Group Buy
Apr-25-19 Upgrade UBS Neutral → Buy $170 → $240
Tom, aka T Rex, is seasoned financial pro that cut his teeth on the Chicago trading oil futures in 1995. He has bachelor’s degree in finance and management. In less than 3 years he bought his own seat and set up shop on the exchange. For the next 10 years Rex traded his own account and some institutional accounts. In 2017, he decided to move to Florida and focus on educating traders and writing for financial websites.