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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