FB Stock Forecast: Facebook Inc price steady as broader market stabilises
- Australia news law closely watched by other countries.
- Technology stocks strong performers during the pandemic.
- Facebook posted strong Q4 2020 results.
Facebook shares are trading at $262 during Thursday's pre-market as investors mull over recent inflation concerns and an apparent switch from tech names to consumer cyclical.
FB Stock Earnings
Facebook reported strong earnings on January 27 for the period Q4 2020. Analysts had expected earnings per share of $3.22 but Facebook EPS for the period came in at $3.88. Revenue also beat estimates with $28.07 billion versus the $26.43 average estimate.
FB Stock News
Facebook and Australia have been in the news this week. On Thursday Reuters reported that the Australian parliament had passed media reforms.
"The code will ensure news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism," Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement, according to a Reuters report.
On Feb 17 a Reuters report said that News Corp and Alphabets Google had signed a global news deal. Several Australian media companies such as Seven West Media, Nine Entertainment, and Australian Broadcasting Corp said they were in talks with Facebook according to Reuters.
FB Technical analysis
Facebook has been in a relatively wide consolidation channel since March/April 2020. A breakout to either side $245 or $297 would be significant and should be accompanied by an increase in volume to confirm any breakout. The initial target for bulls would be to re-take the 21-day moving average and then the 2021 high at $286.79. A nice bullish engulfing candle for the S&P on Tuesday has been matched here and gives further credence to bullish arguments. a small double bottom at $255 also helps the case. A break of $255 will give lower channel support at c.$245 as the next target.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
