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FB Facebook to lose market share for TRUTH Social ???Facebook suspended former President Donald Trump until at least January 2023,but retaliation has begun. Trump Media & Technology Group and Digital World Acquisition Corp. DWAC have entered into a definitive merger agreement. The transaction values TMTG at an initial enterprise value of $875 Million, with a potential valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination. Truth Social is aiming for a beta launch in November. TRUTH Social will be a competitor to Twitter and Facebook . TMTG+ will compete with Netflix and Disney+. TMTG news will compete with CNN and iHeart Radio. They have also plans for a Tech Stack that includes web hosting (vs Amazon Cloud) and payment processing software (vs PayPal). Could this be the new Twitter / Facebook platform? Can we expect a retracement to January 2021 area because of TRUTH Social gaining momentum and market share? I`m looking forward to read your opinion about it!
NASDAQ:METAShort
by TopgOptions
6
Will FB Stock Recover From Its Latest Controversy?It is hard to find a positive word about Facebook (NASDAQ FB), possibly for a good reason. As the dominant social media platform, it has experienced its fair share of controversy and accusations of impropriety since its inception in 2004. Controversies that readily come to mind include misusing user data and helping bad-faith actors interfere with US elections. The latter accusation, may be a a little tenuous. nonetheless, I’m firmly in the camp that believes that the world would be better off without the platform existing. It appears that Facebook’s own research may back up this assertion, as revealed by data scientist and former Facebook Product Manager turned Whistleblower, Frances Haugen. Facebook’s latest controversy Haugen left Facebook in May 2021, but not before scanning thousands of pages worth of documents pertaining to internal research the Company had conducted. The research purports to acknowledge the harm that Facebook and its family of apps cause to its youngest user’s mental health, in addition to its use in spreading misinformation. This research was not openly disclosed. Haugen spent Wednesday testifying in front of US congress and called for policymakers to consider regulating Facebook. Since 2018, Haugen argues, Facebook’s algorithm has prioritised a newsfeed that is dangerous, inflammatory, and yields unhealthy side effects. It could be that Haugen’s whistleblowing will strengthen policymakers’ resolve to regulate Facebook. Will the SEC get involved? Haugen has filed eight whistleblower complaints with the Securities and Exchange Commission (SEC). As a publicly listed Company, Facebook owes a duty of care to its investors to disclose information relevant to its performance. Arguably, the results of its internal research should have been disclosed, or at the very least, the Company should not be misleading the public about its progress to combat its harmful offshoots or omitting what its research shows to be true. This is what Haugen’s expose has revealed to the SEC. If the SEC proceeds with opening a case in relation to Haugen’s allegations, FB Stock may experience a material impact. Did FB Stock shrug off another controversy? On the day that the whistleblower story broke, Monday 4 October, FB stock fell 2.77%. Coincidently, Facebook and its family of apps experienced a 7-hour outage on the very same day that may have heightened investors’ concerns about the stock. Although, to put the 2.77% into perspective, it should be noted that FB Stock experienced very similar and frequent drops over the course September without any obvious causes. By the close of Wednesday, at the time of writing, Facebook has almost clawed itself back to its Monday opening price. FB stock rose 1.33% on Tuesday and another 1.18% on Wednesday.
NASDAQ:META
by BlackBull_Markets
FACEBOOK: FUNDAMENTAL ANALYSIS + PRICE ACTION + NEXT TARGET ⚡️It's no secret that social media giant Facebook generates an incredible volume of free cash flow. Even following covering all of its expenses, the company makes so much money that it still has enough to spend on stock buybacks and other shareholder-friendly expenses. That's why the business's free cash flow is expected to continue to grow - and why this is excellent news for shareholders. Facebook generates the biggest part of its capital from selling advertising on its social networks -- and, as per the company, it's doing better than ever. The economy is growing, and more and more advertisers are struggling for ad space around the same limited number of user-targeted keywords. This growing demand allows Facebook to charge more to sell ads and, as a result, generate revenue. In its Q2 2021 results, Facebook's CFO reported that the average price per ad increased 47% in Q2 and 30% in Q1. The total number of ads sold was up 6% year over year in Q2 and 12% in Q1 - meaning that the company is getting most of its sales growth from the increase in price per ad, rather than from the increase in the total number of ads sold. The CFO expects higher ad prices to boost Facebook's ad revenue for the rest of the year. And as Facebook's revenue grows, so does its free cash flow.FB has constantly converted about 30 percent of its revenue into free cash flow over the past four quarters. Facebook can generate such a high level of free cash flow because the company's internal operating margins are very high. For every new ad it accepts, it incurs minimal additional costs. That indicates that 30% of all new ad sales go directly into the company's cash profits. This increase in free cash flow helped the company increase its stock repurchases from $1.4 billion in last year's quarter to $7.1 billion in the most recent quarter. And both have fueled investor confidence in the company, causing the Facebook stock to rise about 40 percent over the past year. Analysts expect Facebook's revenue to be $119.53 billion in 2021, up 14% from $104.79 billion last year. By 2022, they expect further growth of 19.1% to $142.44 billion in 2022. Investors will keep an eye on these free cash flow numbers and use them to decide how much they are ready to pay for the Facebook stock. As of the moment of writing, the company has a market value of just over $1 trillion and 12 months of free cash flow of $32.17 billion, which means a price to free cash flow ratio of about 32.7. If that figure simply holds over a subsequent couple of years, the company's FCF forecast for 2022 of $42.73 billion would imply a target market capitalization of nearly $1.4 trillion -- up more than 30% from today's price. Facebook is likely to announce third-quarter results before the end of October. If the company continues to report tremendous growth in ad revenue, as it has over the past few quarters, we can expect free cash flow to continue to rise. Facebook stock has shown significant growth in the past year, but additional free cash flow growth could continue to fuel that growth. If that happens, investors should have no qualms about continuing to build up their positions on Facebook or opening new ones. Check the Links on BIO and If you LIKE this analysis, Please support our Idea by hitting the LIKE 👍 button Traders, if you like this idea or have your own opinion about it, please write your own in the comment box . We will be glad for this. Feel free to request any pair/instrument analysis or ask any questions in the comment section below. Have a Good Day Trading !
NASDAQ:METALong
by FOREXN1
9
FACEBOOK:FUNDAMENTAL ANALYSIS+PRICE ACTION|NEXT TARGET|LONG🔔🔔Although the Facebook stock is up nearly 33% for the year, some analysts are concerned about the company's prospects. The stock's rise declined after the company released its second-quarter results in late July, as investors were concerned about a slight decline in daily active users in the U.S. and Canada, as well as earnings projections. Nevertheless, the company beat analysts' expectations, reporting year-over-year revenue growth of 56% and earnings per share (EPS) growth of 101%. Both figures exceeded consensus estimates. While there are a few worried analysts, don't count Credit Suisse's Stephen Jue among them. After the quarterly report was released, he raised his target price per Facebook share to $500 from $480 and maintained his outperform rating. This is now the highest price target among Wall Street analysts. While most analysts set price targets for 12 to 18 months, there are several indicators from a valuation perspective that suggest Facebook should be worth $500 a share now. First of all, this is when comparing Facebook to smaller peers such as Twitter and Snap, which trade at projected price-to-earnings (P/E) ratios of 70 times and 270 times, respectively. Facebook's forward P/E ratio is 28.5. Sure, both companies had higher growth rates than Facebook's 56 percent increase in the top line last quarter -- Twitter by 74 percent and Snap by 116 percent -- but it would only take a 40 percent increase in value to become a $500 stock, which is equivalent to 40 times projected earnings for Facebook. Comparisons to the broader market also seem favorable when growth is taken into account. According to Standard & Poor's, Facebook is trading at 27 compared to 31 on the S&P 500, even though the S&P 500 had negative sales growth over the previous year (compared to Facebook's 56% growth previously noted). Finally, Facebook has another way to make it easier to reach the $500 per share price: shares buyback. Reducing the total number of shares increases earnings per share and raises the price per share, all other things being equal. Earlier this year, the company increased its share buyback by adding $25 billion (now 2.5 percent of total shares) to its existing $8 billion authorization. Of course, the Facebook stock carries some risks. It's a rare company that draws bipartisan ire at both the federal and state levels. A recent lawsuit by 48 states as well as the Federal Trade Commission for illegal monopolization was dismissed. State attorneys general have indicated that they will fight the decision. While the rhetoric is heated to the extreme, it is likely that any risk is short-term and has little impact on Facebook's core business. However, Zuckerberg is working on something new, and this could be the biggest opportunity for the company. In his last earnings report, the CEO stated his desire to turn Facebook into a "meta-universe company" within five years. The company has high hopes for an inspired VR experience, which it expects will replace the mobile Internet. Despite Zuckerberg's fervor, investors should view any meta-village-related revenue as the cherry on top of a strong core social media business. It is this optionality that makes the company a sound investment. Facebook's $500 price tag doesn't seem far-fetched, and long-term investors are likely to see the stock exceed that figure - perhaps even sooner than 18 months from now. In addition, the Facebook stock fell yesterday along with the broader market decline on a weak retail sales report. That's probably what caused the social media giant's stock to fall since the performance of its advertising business is closely tied to overall consumer spending. Also, company officials said they would remove Taliban or pro-Taliban content, deeming the group a terrorist organization after its takeover of Afghanistan just the other day. By the end of the day, Facebook shares were down 2.2%, while the S&P 500 was down 0.7% and the Nasdaq lost 0.9%. Total retail sales in July were worse than expected. The Census Bureau reported that total retail sales fell 1.1% from June through July, with auto dealerships, clothing stores, and e-commerce especially weak. The main takeaway from the report seemed to be that the delta variant of COVID-19 was at least a moderate impediment to getting back to work, delaying returns to offices, and possibly discouraging Americans from other activities such as travel. Meanwhile, other sectors that surged at the beginning of the pandemic, such as the auto industry and e-commerce, two key sources of ad revenue for Facebook, now seem to be normalizing as the pandemic-related favorable factors they enjoyed begin to subside. Separately, the company said it is actively removing pro-Taliban content, although the question of what and how to ban it on the platform has been a tricky one in the past. For example, the Washington Post reported that members of the Taliban used WhatsApp to send messages to Afghan citizens, and these incidents could be an eyesore for Facebook if they continue. Yesterday's 2 percent drop in Facebook stock should not change investors' opinions of the company, as such fluctuations are normal, especially given the news about retail sales and the sell-off in the market as a whole. In addition, the company came out with an outstanding earnings report in the second quarter and is likely to perform well in the third quarter since it went through a boycott period last year. This development is a reminder that Facebook faces some political risk, so investors may want to pay attention to how the company is handling the situation in Afghanistan.
NASDAQ:METALong
by FOREXN1
1
FACEBOOK: FUNDAMENTAL ANALYSIS+PRICE ACTION & NEXT TARGET|LONG🔔Facebook beat Wall Street analysts' expectations in its second-quarter earnings report. Revenue rose 56% year-over-year to $29.1 billion, beating analysts' forecasts, and earnings per share doubled from the quarter that suffered a lockdown a year ago to $3.61, beating the consensus forecast of $3.02. Despite that strong performance, Facebook's stock price fell 4 percent as the company's growth lagged behind that of Google's parent company Alphabet, and the company said it expects earnings growth to slow significantly in the second half of the year. But the second-quarter results weren't just indicative of the underlying numbers. Facebook CFO Dave Wehner recently warned investors of an impending slowdown in the company's revenue growth in the second half of 2021. After reporting impressive growth in advertising revenue compared to the second quarter of last year, Wehner reminded investors that April and June of last year were very volatile times for marketers who cut back on advertising spending. As we enter the second half of the year, comparable periods from 2020 will be much more difficult, and revenue growth will slow. That's why investors shouldn't be too concerned about Wehner's comments. Looking back to 2020 and the first half of 2021, investors can get a better idea of where Facebook is headed. In the second quarter of last year, Facebook's ad impressions were up 40%, while average ad prices were down 28%. Naturally, this presents a difficult comparison for ad impressions growth, but it's easy to use the previous year's numbers to compare ad prices. Indeed, Facebook's ad impressions grew only 6% in the second quarter, but ad prices jumped 47%. Facebook | Fundamental Analysis As you can see, ad prices remained relatively low during the second half of the year. While this is still better than the average decline in ad prices in the first and second quarters of 2020, the growth was not what investors are used to. At the same time, growth in ad impressions declined on the back of improved pricing. In his forecast, Wehner virtually eliminated the variable of ad impression growth from the revenue growth equation. He said he believes that the rise in the COVID-19 pandemic, which has been particularly pronounced in the high-margin region of North America, poses a challenge to 2021's attraction growth. In addition, the growing shift from feeds to video products such as Stories, Reels, and Facebook Watch will lead to a decline in impressions. Even if we exclude the growth in ad impressions from revenue growth projections, ad prices should still increase markedly in the second half of the year due to strong demand from marketers. One need only look at the revenue projections of Facebook's competitors to get an idea of demand in the third quarter. According to Twitter, the company expects revenue growth of 30% on average, and Snap, in turn, expects revenue growth of 58-60%. Nevertheless, Facebook should be able to increase the number of ad impressions. First, the company continues to increase the number of daily active users by 7% and 12% on Facebook and the entire family of apps, respectively. Second, the company is increasing ad downloads in its video products, such as Reels, which account for a significant amount of engagement on Instagram. Reels is still in the very early stages of monetization, but it is growing rapidly. This factor, combined with the growth in users, makes modest growth in impressions possible. With continued strong demand for digital advertising and modest growth in the number of impressions, FAANG share ad revenue should continue to grow at a pre-pandemic pace in the upper 20% range. Yes, this is a slowdown from the first half of the year, but it is still very strong growth for a company of this site like Facebook.
Editors' picks
NASDAQ:METALong
by FOREXN1
19
Facebook stock price growth channel in action Targets in descripThe more the world absorbs: the Internet, the virtual universe, and the like, the higher the stock price of the companies that control social networks. Today, we will analyze the share price of the Facebook corporation. It ranks as one of the Big Five tech companies along with Microsoft, Amazon, Apple, and Google. Although the company has been since 2004, trading in FB shares began on May 18, 2012. The first day of trading closed at $38.23, just $0.23 above the IPO price . The minimum value of the share price was fixed on 08/04/2012 at $17.55 , which at the time was more than -50% lower than the fixed IPO price. However, since then a growth trend has begun, which has been going on for almost 10 years. Today, FB's share price is ten times the IPO price and 20 times more, the minimum price. From 2014 to the current day, the price of Facebook shares has been moving in a beautiful channel upward, where the cyclical movement in the upper and lower parts of the channel is clearly traced. In May 2019, Facebook founded Facebook Libra in order to develop its own stablecoin of the Libra cryptocurrency. However, the project collided with bureaucracy and US laws and disappeared from the horizon of public development. At the moment, it is likely that the FB share price will be in the consolidation of $325-359 for some time. After fixing the price above $359 — a strong long to the upper targets of $435-455 Below $285 , it is better to abandon the long for a while, as the way will open for a fall to $ 218-220 . There will be the lower border of the growth channel, as well as a strong mirror level , which has repeatedly served as resistance and support in the past.
NASDAQ:META
by P_S_trade
27
Losing friends #stocksFacebook is being cut from the portfolio today after breaking below range lows. The stock has been an underperformer since I bought it in the November and I am not going to wait around for it to get its act together. If we can get back over 275 and the downward trendline I will reconsider but for now the stock is a no touch. The twitter news is bad for twitter based on the price action today but I think it is equally bad for Facebook. Both are going to have to try to balance free speech with disinformation and I am not sure if either have the answers.
NASDAQ:META
by IngenuityTrading
6
Facebook Buying opportunity zone🙋‍♂️ Hello Stocks Community! Check out my long term analysis on Facebook. In the chart you can see my Buying S/R zones where I am going with long position. Also you can see there Retails Stoploss zones and liquidity zone. Now is potential go down, but I am not shorting that. I am waiting to my Buy zone or for a new scenario. Will keep you updated! More information about my trading style: I am not a pattern trader. My strategy and edge are based on volume zones where I see Big players were trading. When the market comes there, I want to enter a trade. Every day I identify key levels and key zones, then I just wait for the price to come. Hope it helps, See you next time!
NASDAQ:META
by Asanato
2
Facebook plans to release Libra crypt currency in January 2021.Such triangles are traded on the fact of breakout. Of course, the news is interesting: Libra will still be FT: Facebook plans to release Libra crypt currency in January 2021. Initially, Libra association will launch only the crypt currency to the dollar. Facebook may release Libra crypto currency in January 2021, writes. Financial Times with reference to the three people involved in the initiative. The currency will be in an even more limited format than originally planned. Libra Association, which in addition to the social network includes Lyft, Spotify, Uber and others, will launch only the cryptovalue linked to the dollar, told the publication one of the sources. According to him, Libra, tied to the euro and other currencies, as well as multicurrency token will be launched later. The exact launch date of Libra will depend on when the project receives approval from Finma, Switzerland, but it can happen in January, three people said. The company filed the application in May, Finma does not comment on it. The Novi crypto wallet is already "ready in terms of product", but will not initially serve all regions as the company wants to focus on large money transfer channels, one source told FT. According to him, Novi needs its own license in every state of the United States - he has ten more to get. Libra and Novi refused to comment on the publication. - The launch of the Libra crypt currency and wallet for its use social network reported in June 2019. The company became partners of 27 organizations, including large payment systems. - The company planned to release the currency in 2020, but faced criticism from regulators: those were afraid that Libra could affect the exchange rate of the dollar or euro, as well as promote money laundering and financing terrorism. - In October 2019, the project left PayPal, while Visa, Mastercard, eBay and several other companies refused to cooperate. - In April 2020, the social network decided to review the project and offer users currencies produced by central banks, such as the dollar and the euro. In May, the company created an independent "daughter" for the development of the crypto pocket to show that Libra does not belong to the social network, and Facebook is only part of the association with others.
NASDAQ:METAShort
by Yuriy_Bishko
5
Facebook (FB): An In-depth Analysis of an Undervalued CompanyIn this post, I’ll be providing an in-depth analysis of Facebook (FB), which was part of FAANG (Facebook, Amazon (AMZN), Apple (AAPL), and Google (GOOGL)), leading the stock market since the financial crash up to 2019, before it was replaced by MAGA (Microsoft (MSFT), Amazon, Google, and Apple). I'll be exploring its business models, financials, weaknesses and threats, the technical analysis of the stock, and my final outlook on the company. Facebook has been under scrutiny for a while, due to issues regarding: fake news scandal regarding the US presidential elections, the violation of data protection laws in Europe, and advertisement boycotts. However, it seems that Facebook is ready for another run as a high-potential growth stock, through its diversification in business models and streams of revenue. Business Models 1. Target Advertisements Based on its tremendous number of users, Facebook has its strength in targeted ads. The ads provided through facebook are optimized through their algorithms, allowing Facebook to receive more money for ads compared to its counterparts. There was a time when Facebook’s ad revenue went up by 50% every year, but growth has slowed down to 10% a year. Nevertheless, based on the recent increase in users, there is huge growth potential as Facebook seeks to advertise in the field of gaming and e-commerce. 2. Increase in users Facebook is another company that benefited from the Corona Virus (COVID-19) pandemic. Its user base increased significantly; FB’s daily active users (DAU) increased by 13%, and monthly active users (MAU) by 12% compared to those of last year. Considering the fact that Facebook’s user growth rate was at a single digit, the increase in number of users demonstrates strong growth potential. With the number of advertisers at 9 million, despite the boycott, Facebook will be able to capitalize on ad demand from mid-small sized companies. 3. Family Applications Facebook owns other family apps such as: Instagram, Facebook Messenger, and Whatsapp. The monthly active people (MAP) for all these applications combined is at 3.14 billion, which makes Facebook the most used social application excluding China. The DAU and MAU for the family applications have also increased by 15.4% and 13.8% each compared to those of last year. 4. E-commerce In August 25, Facebook added a ‘Facebook Shops’ tab on the explore page, allowing users to directly purchase goods. This feature is also available on Instagram as well. This indicates significant growth for Facebook, as it incentivizes users not to open their own shops on Shopify or Amazon, but to open a shop directly on Facebook, which can provide a products page that is optimized for a mobile experience. Considering that the e-commerce landscape is changing to a D2c (directly to customer) format, Facebook and Instagram can easily be the largest market share holder. Also through the use of Facebook messenger, communication between the buyer and the seller is much easy, and live shopping, in the form we have seen in Instagram, is being tested as well. 5. Mobile Payments Whatsapp is launching a service in Brazil, offering payments that could be made to purchase goods, or wire someone money. Consumers can use this service for free, but companies have to pay a 3.99% fee. In the near future, we’ll see people purchase goods directly from Instagram and Facebook, and as such, Facebook has partnered up with e-commerce corporations such as Shopify (SHOP) and Big Commerce (BIGC). 6. Gaming Facbook’s market share in live game streaming has been showing a steady increase, and creating a creator community. They also have strength in the AR/VR gaming industry, as they have acquired the VR headset company oculus in 2014. The growth in revenue of these gaming devices mark a 40% yoy growth. Facebook’s diversification in the gaming industry will also provide them an opportunity for growth. Financials - Facebook generates 98% of its revenue from advertisements - Their ad revenue was less than $20 billion in 2015, but has since grown exponentially to about $70 billion in 2019. - While their gross margin percentage has been declining since 2017 due to traffic acquisition costs, it’s still close to 82%. - Facebook’s cash generation from operations demonstrates phenomenal numbers. - FB is a cash generating machine, and heavily reinvests that capital back into R&D, marketing, and infrastructure. - FB is free cash flow positive, with over $20 billion in 2019. - This means that the company has enough cash on hand to repay creditors and issue dividends to shareholders. - 71.6% comes from Facebook ads, 25.2% comes from Instagram ads - Facebook’s 2020 Q2 ad revenue exceeded expectations. While the cost of advertisement reduced by 21%, with the increase in user traffic, ad revenue increased by 10.2% compared to last year’s quarter, marking $18.32 Billion. - Overall, Facebook demonstrates extremely healthy financials with a mix of steady and exponential growth in their earnings Technical Analysis - To begin with, we can first see that the daily chart is testing the 20 Simple Moving Average (SMA) and the 0.236 Fibonacci retracement resistance - The SMAs are aligned in the order of – 20, 60, and 100 – indicating that the overall trend is an uptrend - Prices have entered, and bounced on the Ichimoku Cloud support - Counting Elliott Waves, we can see that an Impulse Wave Count (12345) has played out since the drop caused by the pandemic, and that we are going through a small phase of correction, potentially counting an Elliott Corrective Wave (ABC). - While a corrective move down to $220 levels around the 0.5 Fibonacci retracement support is possible, it’s not yet probable as significant support levels have not been broken yet. Weakness/Threats - Facebook is exposed to the threat of regulation risks regarding laws of personal information protection. - While Facbook aims to combine all its family apps for synergy, measures will the taken by the government to regulate such efforts, to prevent monopoly. - Apple’s new IOS 14 policy made it difficult for app developers to advertise their product on Facebook, and it’s expected that Facebook’s 2020 Q4 earnings will be affected by it. Final Outlook Overall, Facebook is a big corporation that still has huge growth potential by diversifying its business model. Facebook’s strategy to lock up users within their platform, install shops, and ultimately grow into a payment platform is extremely ambitious yet totally possible. While most people know this company, they are overlooking the growth potential it can achieve, and thus, this stock would be a gem for the long term outlook. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
NASDAQ:METALong
by Michael_Wang_Official
6