Shares of Facebook
Inc(NASDAQ:FB) gapped down this morning and slid near 3% in first few
minutes as the broader market slipped with the DOW down 60 points. The stock
had closed lower in the past four consecutive days and lost about 5% from its
recent peak of $31.47.
The recent bounced back had been signaling bullish signal. But
the stock once again couldn’t break above its key resistance of $32.50.
Moreover, after today’s fall, the stock has fallen below its 20-day and 50-day
moving average, which is not a good technical signal.
This morning, the company has agreed to acquire mobile
bookmarking startup Spool in order to provide boost to for its mobile users,
which has been criticizing by analysts since its debut on the stock market. Spool
has special focus on mobile device content.
Since its IPO, Facebook has made several acquisition including
Face.com and Instagram for about USD1bn in exchange for cash and Facebook
shares.
Last week, As per recent data gathered by ComScore Inc., Facebook;s
total users posted its first monthly increase in the past three month. The
world’s largest social networking website witnessed a 1.10% jump in unique
visitors in U.S. to 159.8 million in June from the previous month. There is
more good news for the website, as time average time spent on the website rose
5.10% to 400.2 minutes or over 6.50 hours followed by a jump of less than 1% in
the preceding month.
The stock is expected to show high volatility in coming two
weeks ahead of its first ever quarterly earnings after going public. Analysts are estimating the company to report
12 cents a share on revenue of $1.15 billion. Investors would also like to the
company’s performance in terms of advertising market.
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