Facebook; Fb Stock Being Called Bullish In Struggling Economy

Glenn Brock - Author

Nov. 3 2016, Updated 5:50 p.m. ET

Facebook, specifically Fb stock, looks strong and appears to be getting stronger.

According to Valuewalk, Fb stock is expected to rise after the earlier earnings report. Many expect the stock to be able to overcome the struggling economy. Many investors are betting that the Fb stock will meet or exceed value after the earnings report is released. Saumya Vaishampayan of the Wall Street Journal reports that the cumulative data indicates that call options on Facebook Inc.(NASDAQ:FB) carry a higher price than shares normally traded were purchased on Tuesday, with the most popular call being $87 per stock by Friday.

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Many see the Fb stock potentially moving by six percent in either direction by the end of the week. Some options traders are using this to employ a straddle options strategy. This strategy entails buying both call and pull options close to the price of the stock. Traders are betting on the margin, not the gains or losses. If Fb stock does move by the anticipated 6 percent, that would be the biggest move by the Fb stock since October, when it went down by 6.1 percent. In January, it went up again by 2.3 percent after the quarterly report. The largest recorded move was 3.6 percent before that.

According to the Mideast Times, Facebook Vice President Colin Stretch has made three separate Fb stock sales. On April 14, Stretch sold 1,000 Fb stocks. The next day, Stretch sold 5,264 Fb stocks. And, on April 21, Stretch sold another 1,000 Fb stocks. Overall, Stretch sold 7,264 Fb stocks for a total of $603,023.92. All sales were disclosed to the Securities and Exchanges Commission.

Fb stock ended at $84.63, with 45,547,963 shares of Fb stock being exchanged. Fb stock’s lowest yearly value was $54.66, and the highest yearly value was $86.07. Fb stock’s 50-day moving average is $81, and its 200-day moving average is $77.

All of these bits of information and news point to very good news for Facebook and Fb stock. One company, Cleveland Research, set Fb stock at “buy” and a price target of $100 per share. Deutsche Bank also rates Fb stock at “buy”, but only a $90 price target. Oppenheimer rated Fb stock at “outperform,” but lowered its original price target from $100 to $80.78. SunTrust has set Fb stock at “buy” with a price ceiling at $90.

It seems that many speculators and investors believe that even in a sluggish economy, Facebook and Fb stock are immune to the negative impact. Fb stock, if the prevailing parameters stay the same, the stock should blow up.

[Image courtesy of Bidness ETC]


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