Is Face book undervalueLet’s start with fundamentals:
1.Earning for q4 was about 4 % below estimate (33.67 B) but still 20 % higher than same period last year.
2.Totall net income for 2020 was 29.15 B and for 2021(4 quarters) is 39.37 B. Isn’t it wonderful?
And FB is trading at 232$ (is equal to the average price of 2020, but with 34% higher net income.)
And after all FB is heavily investing in metaverse. This investment reduces net income for the current year and it will gain it back in near future.
Now technical:
1.Who bought 181 M of FB shares yesterday and 42 M of shares until 12 PM while the average volume was about 20 M? Yes, big boys
2.look at the chart at weekly period:
The important 200 moving average is touched and since 2016 only was touched 2 times, once in Dec2018 and the second was in March 2020 at the beginning of the pandemic. This moving average is an important support.
3.The volume that has been traded in this week is more than the volume in the peak of covid19 decline.
4.You can see the black line is a very strong support.
5.The CCI level is -385 which is the lowest amount from the IPO
6.The RSI level is 23 which is the lowest amount from the IPO.
All saying that it will see the real value.
