Published On: Fri, Apr 28th, 2017

Facebook, Inc. (FB/NYSE/S&P500)


Industry: Internet provider of information

Current trend

On May 3 after the closing of the market Facebook will report on Q1 2017. In Q1 2016 the company’s revenue grew by 52% and return per share increased by 189% in YoY terms. As a result of this quarter The Wall Street analysts expect the revenue to increase by 45% in YoY terms up to $ 7.83 bln, and RPS to reach $ 1.22. Facebook has been exceeding financial expectations of the market for 15 quarters in a row.

Apart from financial results investors should pay attention to the plans of Facebook management to monetize Instagram and Messenger. Since the end of December 2016 the number of monthly active Instagram users has grown up to 700 mln. Messenger has shown 1.2 bln active users since last summer.

During the previous week Facebook shares grew by 2.71%. S&P500 went up by 1.60% within the same period.

Comparing company’s multiplier with its competitors, we can say that Facebook’s shares are neutral.   

Key levels

For the last two weeks the stock of the company has been showing an evident upward trend. The growth of #FB quotes within this period exceeded 5%. During yesterday’s trading the emitter formed local resistance at the level of 147.70. The level of 146.00 is a mirror support. Indicators show the strength of the buyers: the price has consolidated above MA(50) and MA(200), and MACD started to rise. One may consider buying #FB.

Support levels: 146.00, 143.50.

Resistance levels: 147.70.    

Trading tips

If the price consolidates above the local resistance level of 147.70 one may consider opening long positions. Stop-loss will be at 146.50. Potential profits can be locked in by installments at 149.00, 150.00 and 151.00.

The period of implementation is 1-3 days.       

Forex Analysis

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