In March 2012 we could read on Barron’s cover:
Facebook‘s 40% plunge from its initial-public-offering price of $38 in May has millions of investors asking a single question: Is the stock a buy? The short answer is “No.” After a recent rally, to $23 from a low of $17.55, the stock trades at high multiples of both sales and earnings, even as uncertainty about the outlook for its business grows.
Six years later, in March 2018, the cover of Barron’s said:
Facebook Shares Look Like a Bargain.
Concerns over privacy and regulation have taken a toll on the social network’s shares—and created a buying opportunity.
If the above is a long-term contraindication or not we can’t know, but recent plunge in FB has done a lot of damage to the sentiment and the chart. The weekly longer term trend since the lows in 2012 is around these levels. 170 is a first support level and below that, we have the big 160 support to watch. 180 is the short term resistance.
Let’s see what the pundits say long term but FB feels still heavy short term.
