After having corrected sharply between its September record of $ 384 and the end of last week, Facebook stock has picked up since Monday, with more information supporting the stock price, as well as the prospect of strong Q3 results. next week.
In this analysis, we will therefore review the Facebook stock, its recent news and forecasts to determine whether to buy Facebook stock this week, with a view to publication expected next Monday after the close of the US stock exchanges.
Action Facebook will change its name to reflect its new strategic direction
The most recent Facebook stock news surprised many investors. Indeed, according to information unveiled by The Verge and taken up by numerous financial media, according to which the company plans to change its name next week, in order to align its brand with the “metaverse” on which CEO Mark Zuckerberg wants the company is concentrating.
Let us recall in this regard that on Monday, Facebook announced the creation of 10,000 new jobs in the European Union over the next five years, as part of the construction of its metaverse, a virtual 3D environment using AR and VR technologies, which will allow users to do anything they want from playing games with their friends to working and shopping.
Considering the fact that the name Facebook has been associated with several global controversies, it is arguably also a question of putting less emphasis on its eponymous social network. The name change is expected to be revealed at Facebook’s annual Connect conference on Oct. 28, or maybe even before, according to The Verge.
Undoubtedly, the new strategic direction of the company which would be confirmed by this name change would attract the attention of investors and arouse their enthusiasm.
Q3 results expected on Monday should turn out to be very strong
Another argument in favor of buying Facebook stock concerns the strong analyte forecasts for quarterly earnings expected next Monday, October 25.
Indeed, the consensus forecasts an average EPS of 3.18 $, which would represent a growth of 67% year on year. The turnover is meanwhile expected at 29.5 billion dollars, nearly 50 more than the same quarter of the previous year.
Finally, it should not be forgotten that Facebook has exceeded analysts’ expectations in terms of EPS and revenue for the last 5 consecutive quarters, which suggests that a good surprise is also highly likely for next week’s results.
The graphical context seems ideal for buying Facebook stock
From a graphical and tactical point of view, it is important to remember that the Facebook action has barely confirmed, since the start of the week, the end of a correction of around 6 weeks.
As seen in the weekly chart below, the Facebook share price correction has been halted by a visible uptrend line since March 2020, and has started to rebound from that support.
With the stock still being much closer to this trendline than to its all-time highs, the current price may be ideal for buying Facebook stock.
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Analysts are particularly bullish on Facebook stock
Finally, it should be noted that professional bank analysts have a very positive opinion for the Facebook share. Indeed, of the 31 analysts who follow the action, there are 27 who recommend the purchase, and 4 who recommend to keep. None recommend selling.
In addition, the average 12-month target for these analysts is around $ 430, which represents upside potential of nearly 30% from the current price.
1 Suppliers with your criteria
114 New users today
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0.00 €
What we like
- 0% Commission on Shares
- Ideal for Beginners
- Reliable & Regulated Broker
Cost per transaction
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Mobile app
114 New users today
Account fees (over 12 months)
0.00 €
67% of retail investor accounts lose money when trading CFDs with this provider. You should ask yourself if you can afford to take the high risk of losing your money.