Facebook Calls For Political Ad Block, Stock Edges Lower

Facebook, Inc. (NASDAQ: FB) is pivoting lower this morning after rallying within a hair's breadth of its Aug. 26 all-time high during yesterday's session. While a broader market pullback could be effecting shares, the company also just announced that in the weeks leading up to the presidential election, it will ban new political ads from running on its platforms. Facebook also said it will take down posts claiming that voters will catch COVID-19 should they go to the polls to vote on Nov. 3. So far today, FB is down 1.6% at $297.80. 

The election and its impact on the US stock market

The company also said it would take down posts claiming that voters will catch COVID-19 by going to the polls

This morning's trading aside, FB has seen a pretty impressive streak on the charts of late. The stock just broke north of a former ceiling at the $280 mark, and it appears the $290 level could emerge as a net for the equity going forward. In the past year, FB has seen a roughly 65% return. 

Our last FB check-in noted a major surge in bullish options activity as the security continued to notch new highs. This sentiment has continued on, per Facebook's 10-day call/put volume ratio of 4.16 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all but 2% of readings from the past year. This suggests a much healthier-than-usual appetite for long calls of late. 

This optimism can be seen among the brokerage bunch too, where only two of the 31 in coverage consider the Instagram parent a "hold," compared to 29 "buy" or better ratings. The 12-month consensus price target of $285.57, on the other hand sit just below last night's close. 

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.