Social media giant Facebook, Inc. has lost its momentum after setting its all-time intraday high of $195.32 on Feb. 1. As a laggard since then, the stock was extremely vulnerable on the news of the Cambridge Analytica data scandal that hit on March 19.
Shares of Facebook closed Monday, April 9, at $157.93, down 10.5% year to date and deep in correction territory at 19.1% below its all-time intraday high set on Feb. 1. At its 2018 low of $149.92 set on March 28, the stock was briefly in bear market territory. This morning, Facebook shares reached as high as $159.85 in pre-market trading.
Facebook CEO Mark Zuckerberg will meet with Congress today to discuss the issues surrounding the revelation that the company allowed Cambridge Analytica to mine personal data from 87 million Facebook users. He is set to testify before the Senate Judiciary and Commerce committees on Tuesday and then before the House Energy and Commerce Committee on Wednesday. Wall Street seems to feel that Facebook users are staying engaged on the social media platform, but will institutional investors shy away from the stock?
The daily and weekly charts show how to navigate recent share price volatility. (See also: Zuckerberg: Assume Your FB Info Has Been Taken.)
Facebook is not a bargain, with a P/E ratio of 29.14. The daily chart is close to showing a “death cross,” while its weekly chart is negative. …read more
Read more here: Facebook CEO Faces Congress With Stock Near ‘Death Cross’