Social Media Round-Up: Facebook Wins Trademark Battle; Twitter Takes on the Feds

Social media stocks Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) are both making headlines today

May 9, 2016 at 10:39 AM
facebook X logo linkedin


Social media stocks Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) saw markedly different post-earnings reactions on Wall Street last month. Whereas FB dashed to all-time highs, TWTR has hit record lows. Today, neither stock is making any headway, with FB last seen off 0.3% at $119.12, and TWTR down 0.8% at $14.29, amid a recent round of news. 

Starting with FB, traders are considering the implications of the company's legal win in China -- where Facebook services are banned. Specifically, the company won a trademark battle against another firm that had registered the name "face book." Surprisingly, the shares aren't capitalizing on the news, but are still up 52.6% over the last 12 months. 

Options traders have been betting on additional gains in recent weeks, as call buying has been more popular than put buying -- on an absolute basis -- at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Analysts are also bullish, with 32 of the 33 brokerage firms covering Facebook Inc (NASDAQ:FB) calling the stock a "buy" or better. 

As for TWTR, the company has reportedly prohibited business partner Dataminr -- which sifts through tweets in real-time to identify noteworthy trends and events -- from working with the U.S. government. The decision not to comply with the feds echoes Apple Inc.'s (NASDAQ:AAPL) iPhone spat with the FBI

In the meantime, options traders are still waiting for a breakout from TWTR, which is down 61.5% year-over-year. The stock's 50-day call/put volume ratio at the ISE, PHLX, and CBOE of 3.46 stands at an annual high, meaning call buying has outpaced put buying by a faster pace than at any other time in the past 12 months. However, analysts aren't as optimistic, with the majority rating Twitter Inc (NYSE:TWTR) a "hold" or worse. 

Schaeffer's Expiration Week Countdown subscribers just made 200% GAINS on Twitter Inc (TWTR) calls! Sign up now for a trial subscription.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI