Watch out for this key level in Facebook, Piper Jaffray technical analyst says

Watch out for this key level in Facebook, Piper Jaffray technical analyst says

Watch out for this key level in Facebook, Piper Jaffray technical analyst says

Comments Off on Watch out for this key level in Facebook, Piper Jaffray technical analyst says

Facebook is under a fresh wave of scrutiny.

New York State Attorney Letitia James launched a joint investigation into potential antitrust violations on Friday, joining Florida, Iowa, and Colorado among others in putting the heat on Facebook. The latest probe comes on top of an investigation by the Federal Trade Commission.

The increased regulatory pressure from federal and state bodies hasn’t deterred Craig Johnson, chief market technician at Piper Jaffray.

“We’re still friendly toward the shares,” Johnson said on CNBC’s “Trading Nation” on Friday. “When you look at this chart, we’re still making a series of higher highs and higher lows coming off the December lows, and we’re moving right up toward that 50-day moving average at $191.”

Facebook touched the 50-day moving average on Thursday, but dipped lower Friday. It has not traded above that trend line since early August.

close dialog
What’s your Smart Money IQ?
Test your knowledge and skills.

“Any sort of move above that $191 level sets the stock up to move back toward the $204 or $205 range which I do think is a logical place to go. So, we would continue to be a buyer here of Facebook shares,” said Johnson.

Gina Sanchez, CEO of Chantico Global, says regulatory risk could knock Facebook down from its high valuations.

“Facebook, even despite all of this news, is still trading at a premium in terms of forward PE relative to the industry, and so I don’t know that it’s necessarily pricing in the risk that some of these probes present to Facebook,” Sanchez said on the same segment.

Facebook trades at nearly 22 times forward earnings. The XLC communication services ETF by comparison trades with an 18.5 times multiple.

“These probes don’t go away. If anything, I think that risk continues to grow,” said Sanchez. “At the end of the day, we continue to grapple with whether or not companies like this should even be run for profit or are they simply just a commodity and a utility that really isn’t going to make growth kinds of returns.”

[“source=cnbc”]

Lili

Related Posts

Facebook has a creepy bug that secretly opens phone’s camera in background

Comments Off on Facebook has a creepy bug that secretly opens phone’s camera in background

Facebook cuts off independent political ad reviewers, claims security concerns

Comments Off on Facebook cuts off independent political ad reviewers, claims security concerns

Facebook shares could be on the road to new highs, trader says

Comments Off on Facebook shares could be on the road to new highs, trader says

Facebook in talks with US derivatives regulator over digital currency plans: Report

Comments Off on Facebook in talks with US derivatives regulator over digital currency plans: Report

Facebook could be using its 10 year challenge meme to refine its face recognition AI

Comments Off on Facebook could be using its 10 year challenge meme to refine its face recognition AI

Facebook’s Pivot Confirms Our ‘High-Touch’ Future

Comments Off on Facebook’s Pivot Confirms Our ‘High-Touch’ Future

EU says sites using Facebook’s Like button are responsible for your data

Comments Off on EU says sites using Facebook’s Like button are responsible for your data

Ukrainian hackers used quizzes to leak over 60K Facebook users’ data

Comments Off on Ukrainian hackers used quizzes to leak over 60K Facebook users’ data

Facebook will increase pay for its contractors in North America

Comments Off on Facebook will increase pay for its contractors in North America

Key fact-checkers stop working with Facebook

Comments Off on Key fact-checkers stop working with Facebook

Facebook’s ad delivery could be inherently discriminatory, researchers say

Comments Off on Facebook’s ad delivery could be inherently discriminatory, researchers say

Facebook agrees to pay $5bn in vast privacy settlement, insiders say

Comments Off on Facebook agrees to pay $5bn in vast privacy settlement, insiders say

Create Account



Log In Your Account