FB has been very easy to trade. It had a clear breakout off the well-established channel in July and took support on the trend line.
Trade strategy - Long with a trailing stop loss maintaining 2% below trendline (or wait for clear break below).
Fundamentally, FB has a lot going for it. There is a consistent user growth and active users. Still no competition emerging in social media space. G+ backtracking is a sign of FB strength in the market. Other key points:
- New revenue streams starting with Instagram ads, Newsfeed video ads, etc
- Opportunity to increase revenues from emerging markets (currently very low) by establishing new local models.
- Potential to unlock value with Oculus, Whatsapp and other acquisitions that have not yet contributed to revenues.
Trade strategy - Long with a trailing stop loss maintaining 2% below trendline (or wait for clear break below).
Fundamentally, FB has a lot going for it. There is a consistent user growth and active users. Still no competition emerging in social media space. G+ backtracking is a sign of FB strength in the market. Other key points:
- New revenue streams starting with Instagram ads, Newsfeed video ads, etc
- Opportunity to increase revenues from emerging markets (currently very low) by establishing new local models.
- Potential to unlock value with Oculus, Whatsapp and other acquisitions that have not yet contributed to revenues.