Can Facebook Recover From the Ad Boycott?
Fiona Cincotta June 30, 2020 2:34 PM
Facebook is fielding mounting criticism from a rising number of consumer companies over harmful content on its website. The stock sunk 10% on Friday although the sell off appears to have stabilised.
Facebook manged to claw back 2% in trading on Monday, after shedding 10% across the previous week. The stock is down marginally in pre trading today.
Facebook is fielding mounting criticism from a rising number of consumer companies over harmful content on its website.
The fact that the stock rallied 2% in the previous session shows just how resilient Facebook is and raises the question whether Facebook will be able to recover relatively quickly from this disruption?
The stock is set to open marginally lower on Tuesday -0.5%, which would still be outperforming the broader market.
The stock trades below the 50 sm on the 4-hour chart. However, it remains above its 200 asma and the 100 sma id offering immediate support at $217.00.
A breakthrough the 100 sma at $217.00 could see the stock attach support at 207, yesterday’s low, prior to the 200 sma and psychological level $200 - $198.00.
On the upside, should the 100 sma hold, Facebook could advance back towards the 50 sma at $230.00 and resistance at $237.00 (high 2th June).
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.