What New Virus Strain Means for Traders
On Friday, markets fell sharply on news of a new coronavirus variant detected in South Africa. What to expect next?
Facebook Reported Q3 Earnings
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.
Results
- 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.
Tough time for the social media and advertising sector
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.
What’s next?
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.
Tech outlook
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.
- First of all, be sure you’ve downloaded FBS Trader app or Metatrader 5. FBS allows you to trade stocks only through this software.
- Open an account in FBS Trader or the MT5 account in your personal area.
- Start trading!
Similar
Virgin galactic: Buy When Everybody Sell
Latest news On September 29, Virgin Galactic announced that the Federal Aviation Administration has approved launches resume after an investigation about why its spaceship veered off course while descending during a July flight with founder Richard…
Will AstraZeneca's Earnings Outperform?
The company will be reporting its data on Friday. What should you know?
Latest news
POS: Not Best Option for ETH
Big changes are coming for ETH As it turned out, it will take some time before the miners of Ethereum, and cryptocurrencies based on the same blockchain stop buying video cards…
One Dump to Crash Them All
Starting on December 3 cryptocurrency crash caused panic on the market. Further Bitcoin movements are foggy, but we can manage to peek behind the crypto market’s curtains and figure out what to do.
What is going on with gas?
What is going on with this energy asset these days, and should we prepare for further falls?
