Shares of Facebook Inc (FB) are collapsing dramatically today as more major companies like Verizon (VZ) are stopping ads in protest. While many are stopping for the month of July, Verizon has one-upped it by stopping paid ads indefinitely until Facebook fixes their hate speech issue. Facebook derives 97% of its revenue from ads so as the boycott expands to more and more businesses, it is a big deal. For investors who are long the stock, the fear is that these advertisers will find other places to put their ad Dollars and possibly not come back, at least to the ad-spend levels from prior the boycott. Facebook’s stock was extended prior to this, so a correction in stock price is fully warranted. The question is, where are the buy levels for smart investors and traders.
The Facebook target price buy level is $216.50 as target 1 and $195.00 as target 2. Target 1 is a quick bounce level and target 2 is a swing trade buy level.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.