One of our top large cap ideas here is Facebook, $FB, currently trading at $214.18. Facebook made a new all-time high a few weeks ago, on Jan. 29, at $224.20, and then corrected 10.3% after their earnings report, and has now recovered 6%. $FB is in a longer term uptrend, as the chart below shows, making a series of higher highs and higher lows over the last 12 months. The stock price is currently above the rising 50, 100 and 200-day moving averages, which is a bullish longer-term trend signal. After the post-earnings selloff, FB has been up 8 of the last 9 trading days, indicating that the stock is being accumulated.
Facebook was our Members ‘Chart of the Day’ on 2/07/20 at $210.85 and continues to improve here technically.
From a fundamental standpoint, $FB has a market cap of $603B, earned $18.49 billion over the last 12 months and has zero long-term debt. They currently have over 2.4 billion monthly active users, according to the latest reporting data. They also own Instagram, Messenger and WhatsApp.
For the quarter, Facebook posted revenue of $21.08 billion, up 25% from a year ago, and ahead of the consensus forecast of $20.88 billion. Profits were $2.56 a share, up from $2.38 a year ago, and slightly ahead of the Street consensus at $2.52.
Our focus is on the intermediate to longer-term trend, which is bullish here. With that being said, I always manage downside risk as well. On any pullback, key support levels are the recent lows at $201, and the 200-day moving average, currently at $193.61. My final stop loss risk level here would be at $187.56.
On the upside, if FB can clear $215 over the next few days, it should clear the way for a move to challenge or exceed the recent all time high at $224.
Disclosure: I am currently long Facebook stock.
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