2016-06-29 15:17:36

Facebook Inc., #FB [NASD]
Technologies, Information Internet Providers, USA

Financial performance of the company:
Index – S&P 500; Beta – 0.73
Capitalization – 327.58 В; Return on asset – 8.10%
Income – 5.87 В; Average volume – 29.17 М.
P/E – 89.22. ATR – 4.09

Analytical review:

  • The company ranks the second on capitalization among the issuers in the sector of “Information Internet Providers” traded in the American stock market;
  • Company’s report for Q1 of the fiscal year 2016 pleased investors. Company’s revenue rose to 5.38 billion USD against the forecast of 5.26 billion USD. Net profit of the company also increased. EPS (earnings per share) amounted to 0.52 USD against 0.18 USD for the same period a year ago;
  • Facebook is incorporated into the index S&P 500. The rise in the US stock market has had a positive impact of the company’s stocks. During yesterday’s session ETF for the index S&P 500 (#SPY) rose by 1.8%;
  • Recently, the company signed a 50 million contract with media companies (CNN, the New York Times, Vox Media, Tastemade and others) for making a video for the Live streaming services;
  • effectiveness of the company is confirmed by the high operating margin (36.94%) and net profit (23.71%) compared with the similar companies in the industry (28.03% and 20.77% respectively);
  • Institutional funds own over 65% of the company’s shares. The largest part of the shares belongs to FMR, LLC (6.59%) and Vanguard Group (5.89%).

Summary:

  • The company’s last report has increased investors’ trust to the company. The company’s revenue and net profit have grown significantly, exceeding market expectations. Facebook has strong growth potential. Most part of the company’s shares belongs to the Institutional funds.
  • It is likely that in the near future company’s quotes will go up..

Trading tips for Facebook Inc.

Key levels:
Support levels: 111.00 USD and 108.30 USD.
Resistance levels: 113.40 USD and 116.20 USD.

Medium-term trading, Н1
At the moment the issuer is traded near demand zone of 111.00-111.80 USD. If the price maintains this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 115.15 USD, 117.50 USD and 119.40 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading М15
Currently, the issuer is traded between the local support and resistance levels of 111.80 -113.15. it is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened at the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30%, 20% with the use of training stop.

Short-term trading М15
Short-term trading М15