FTC Accusations Put Facebook Stock Under Pressure

The sentiment surrounding FB is still overwhelmingly bullish, however

Digital Content Manager
Dec 10, 2020 at 9:31 AM
facebook twitter linkedin

Facebook, Inc. (NASDAQ:FB) remains under pressure today, following yesterday's news that the Federal Trade Commission (FTC) and 48 states have filed lawsuits against the social media giant, accusing it of anti-competitive practices. These lawsuits could force FB to sell its highly lucrative acquisitions, Instagram and WhatsApp. Meanwhile, the company is pushing back, calling the lawsuits "revisionist history." 

As a result, FB is slipping even lower in electronic trading, off 0.9% at $275.54 at last check, and down more than 1.8% for the week. The 100-day moving average is still holding out as support, however, though the equity closed back below its 10-day moving average, which provided a temporary floor for FB last week. 

The stock still sports a roughly 38% year-over-year lead, and analysts aren't deterred just yet. In fact, 30 of those covering the equity call it a "buy" or better, compared to  just two "hold" ratings. Plus, the 12-month consensus price target of $319.30 is a 14.9% premium to last night's close. 

Options players are also overwhelmingly bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FB sports a 10-day call/put volume ratio of 3.48, which stands higher than all but 6% of readings from the past year.


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!