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Facebook Inc. traded higher by 0.26% during the course of Thursday’s session, hitting $116.64, with a trading volume of 8,569,588 shares. The social media giant’s 50-day moving average price stood at $126.80 and a 200-day moving average price of $122.49.  

The company posted a 12-month low of $89.37 and a 12-month high of $133.50, with a market capitalization of $273033.84 billion, including a PE ratio of 45.03 and a beta of 0.76.

Meanwhile, the company recently reported its financial earnings for the quarter on November 2nd, with a quarterly earnings per share (EPS) of $1.09, beating analysts’ EPS estimate of $0.12. Its quarterly revenue settled at $7 billion, compared to the analysts’ estimate of $6.90 billion.

Subsequently, the company’s return on equity hit 16.51% and its net margin stood at 30.32%, marking a higher quarterly revenue of 55.8% on a year-over-year basis. During the same period in the previous year, it posted an EPS of $0.57.

On average, analysts are expecting the accompany to post an EPS of $4.09 per share for the current year.

Facebook Miscalculated Ad Metrics

The social media giant announced its miscalculated ad metrics on November 16, citing these user numbers are a significant indicator of performance especially on the company’s growth. Facebook Inc had acknowledged that it may have unintentionally overstated user numbers and had performed a series of remedy, but shares were still seen declining.           

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Further, insider Christopher K. Cox sold about 15,600 shares of Facebook, Inc stocks in a transaction issued on November 14th. The average price of the sold shares stood at $115.83, with a total value of $1,806,948.00.

The insider currently owns 379,068 shares of the company’s stock after the completion of the sale, valuing at $43,907,446.44. The transaction was disclosed a filing with the Securities & Exchange Commission (SEC).          

Current Stance of Facebook Inc. Stock

The chart below illustrates Facebook Inc. stock’s movement ahead of their miscalculated ad metrics, which sent shares to sharply decline, although the company had already performed a series of remedy on the situation, still, shares dropped.

Given a bearish tone of the social media giant’s company shares, several market participants indulged in buying the risky assets, which showed a large gap from November 2 to November 3 with a 6.46 basis points.

Apparently, stock prices followed a consolidating movement, but showed another drop in a heavy trading volume on November 10, touching two resistance lines. Evidently, stock prices are currently attempting to bounce back, but is resting away from the nearest resistance level of 118.26.

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Conclusion

As Facebook Inc.’s miscalculated ad issues has weighed on its shares, we conclude that market participants should still wait on the sidelines as stock prices continued consolidating in Today’s session and a supporting candle still doesn’t show up.

However, investors are still eager to open for Buy position as shares are widely anticipated to decline.

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