The social media giant is trading at 5397, having shed 2% while dealers square up their positions before the latest update. Analysts are expecting full-year revenue of $7.63 billion and earnings per share (EPS) of 84 cents. These figures compare with last year’s full-year revenue of $5.09 billion and EPS of 53 cents. Over the past 12 months the share price has grown 68% and, given the expectations for this year’s full-year figures, the pressure is certainly on for Facebook.
Social media can be fickle and, although third-quarter earnings were strong, suggestions that Facebook is losing popularity with young US teenagers weighed on the stock. Revenue generation outside the US will also be under scrutiny, as previously the company’s money-making ability beyond the US has been questioned.
The stock ran out of momentum as it approached the $60 mark, and the 100 DMA of $50 has been acting as a support. If the stock breaks $55.5 we could test the $60 level, while a drop below $50 might send it towards $45.