The Fall of the Social Media Giant: Why FB Stock Falling?
FB Stock price today is 336.75 USD with a volume of 15,795,226. At the same time, its chart fluctuates between 335.03 USD – 339.92 USD. FB Stock price was a maximum of 339.89 USD and a minimum of 207.11 USD within 52 weeks. Its average volume is 2.631.702, and it is ranked 954.84B in the MarketCap listings. The target point of FB Stock price at the end of 1 year is not clear yet but the 1-year change was 44.84%. The dividend yield of the share is not clear yet. Its book value per share is 0,00. FB Stock is ranked 94.4B in the revenue.
FB stock price fell 0.0059% from $336.77 to $336.75 on the last day. During the day, the stock fluctuated 1.46% from $335.03 to a one-day low of $339.92. FB stock price is fluctuating for this period and there is a 2.32% gain in the last 2 weeks.
The price fell even though volume increased by 4 million shares in the last day. In terms of technical analysis, the opposite direction of volume and price is not a positive signal and may pose a risk. Therefore, the stock should be observed a little more. In total, 16 million shares were traded for approximately $5.30 billion.
FB stock is at the top of a strong uptrend in the short term. This position can normally be a very good selling opportunity for short-term investing investors as a reaction towards the bottom of the trend can be expected. A break of the top trend line at $337.54 could signal a stronger bullish rate.
Considering the current situation, the stock is expected to increase by 16.74% in the next 3 months and have a price between $373.83 and $394.04 at the end of this quarter.
About Facebook Inc
Headquartered in Menlo Park, California, Facebook Inc is an American multinational technology conglomerate. Mark Zuckerberg and his friends Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes founded the holding at Harvard College. Originally known as TheFacebook.com, the network was founded today as Facebook, a popular global social networking service. Facebook which is one of the few and most popular organizations in the world, is considered one of the Big Five companies in US information technology, with Google, Apple, Microsoft, and Amazon.
Facebook does not offer a one-way service. It also offers other products and services beyond the social networking platform in different categories, including Facebook Messenger, Facebook Watch, and Facebook Portal. In addition, the Company has acquired Instagram, WhatsApp, Oculus, Giphy, and Mapillary and holds a 9.9% stake in Jio Platforms. These acquisitions also positively affected the FB stock price.
Analysis of FB Stock
FB stock has both short-term and long-term buy signals that give a positive forecast for the stock. There is also a general BUY signal from the relationship between the two signals where the short-terms are above the long-term.
In the downside adjustments to be made, there will be some support at $333.96 and $321.84. A break in any of these levels will give sell signals. Also, FB Stock has a buy signal at the 3-month Moving Average Convergence Divergence. In addition to these positive signals, some negative signals were also given. These negative signals may have some impact on the near short-term development. On June 14, 2021, a sell signal was issued from the pivot peak. On top of that, a decrease of 0.0059% has been observed so far. Further declines are possible until a new low pivot is published.
Volume rose despite falling prices. It is not good for volume and price to move in opposite directions in technical analysis. This is an early warning and the stock should be watched more closely. Finally, FB Stock received a Gold Star Signal* on February 09, 2021, on the medium-term chart.
What Is the Gold Star Signal?
The Gold Star is a technical signal that Jim Stromberg introduced on the getagraph.com website in 2007. The signal is based on the 50- or 200-day moving averages. It is derived from the well-known ‘Golden Cross’ discussed by many traders and analysts, which defines what is the best technical signal of all. For the signal to be valid, it must cross the price line in a particular pattern.
The Gold Star Signal* is a special combination of short-term trades, long-term trades, and price lines. This combination is very rare. It’s also usually followed by long and strong gains for the stock in question.
Improvement of Facebook
Facebook, which has more than one social media platform, is expected to present its 2021 first-quarter balance sheet on April 28, 2021.
According to the report presented by Facebook in the fourth quarter of 2020, the number of daily active users reached 1.84 billion users, an increase of 11% on an annual basis. The number of monthly active users reached 2.80 billion, pointing to a 12% increase. This data, which is an important variable of advertising activity and revenues on Facebook’s platforms, will be under the microscope in the first quarter balance sheet of 2021.
The company’s earnings per share are expected to be $2.61 in the related period. Company revenue is expected to be $23.715 billion in the relevant period. The highest estimate is $25.371 billion, and the lowest estimate is $21.633 billion. The company’s net profit is expected to be $7,734 billion in the relevant period. The highest estimation is 8.713 billion USD, the lowest estimation is 5.722 billion USD profit.
How Should We Act?
FB Stock finds support at $329.51 from accumulated volume. There is inherently a risk when testing the current stock support level, but this level can provide a buying opportunity for FB Stock investors as an upside reaction can be expected while testing support.
FB stock usually trades at a good volume. The daily fluctuation rate is low. Therefore, the risk is considered low. During the last day, the stock has moved between the maximum and minimum at $4.89 and 1.46%. In the past week, the stock has been fluctuating 1.69% on average daily.
Should You Buy FB Stock?
The analysts recommended stop-loss point is $327.45. The daily volatility rate of this stock is generally low. A low volatility lowers a stock’s risk rating. In this case, FB stock would also be a low-risk investment.
A pivot sell signal was issued from the top 1 day ago. With an overall good trend and positive signals, it could be a strong investment in the short term. It follows that for FB stock to perform well in the short term, the current level may present a buying opportunity.