2021-10-26 • Updated
Facebook, one of the largest tech companies in the US, has revealed its financial results for the third quarter after the market closed.
- EPS: $3.22 (forecast: $3.19)
- Revenue: $29.01B (forecast: $29.49)
Though FB posted stronger-than-expected earnings, its revenue came out worse than the analysts’ forecasts. The main reason is Apple’s privacy changes.
Social media stocks can be pressed by Apple’s overhaul of its privacy settings, which allows iPhone users to choose not to receive targeted advertising. It is a severe problem for all social media platforms (Facebook, Google) as it would decrease their ad sales.
The stock of Snap dropped almost 30% on Friday after the owner of the Snapchat app cautioned that Apple’s data collection policy has created barriers for advertisers to test and gauge their campaigns.
Besides, small and medium-sized businesses are reducing their ad spending as they face challenges of supply-chain issues and rising costs. The falling demand for advertising is negative for Facebook and other social media companies.
Facebook has dropped significantly since early September. It may continue falling in the short term amid all these headwinds mentioned above. However, the stock will inevitably reverse up in the long term. Thus, the current drop should be viewed as a correction which the stock will overcome. It has recovered after every big crisis based on its past performance. Why? Other businesses have no option to ignore the Facebook platform due to its huge global reach.
Facebook has failed to cross the support level of $320.00 at the 200-day moving average and reversed up. If it manages to jump above the 23.6% Fibonacci retracement level of $333.00, the way up to the 38.2% Fibo level at $343.00 will be open. Support levels are the 200-day MA at $320.00 and the next round number of $310.00.
Don't know how to trade stocks? Here are some simple steps.
Coinbase (#COIN) saw its revenue rise to $773 million in Q1 2024, marking a 23% increase from the previous quarter and surpassing analyst expectations.
During his program on CNBC on February 28, Jim Cramer expressed frustration with the impact of earnings reports on market behavior, noting how they often prompt rash decisions by average investors. He criticized the short-term focus and lack of attention to nuance in news coverage of earnings. Cramer cited examples of Home Depot and Lowe's, highlighting how investors reacted hastily to headline news without considering the broader context provided in earnings calls.
As the year winds down and the festive spirit takes hold, the stock market often presents a curious yet anticipated phenomenon known as the Santa Rally. Within this whirlwind of festive trading, let’s look at how two titans of the tech world, Amazon and Apple, might fare during this unique season.
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
