The Facebook launch date for Facebook shops, the company’s new e-commerce product, is around the corner and the stock is seeing some considerable demand. The Facebook stock price is up by nearly 7% as an analyst at Deutsche Bank, tripled his valuation of the product in a recent statement.
Lloyd Walmsley, a Deutsche Bank analyst, has provided a bullish outlook for Facebook Shops, a product which allows businesses to run online stores from their merged Instagram and Facebook accounts. Walmsley believes that Facebook Shops could be a $30 billion revenue opportunity.
The coronavirus pandemic forced the company to bring forward the Facebook launch date for Shops, and the service will come at no cost to businesses that plug into the product.
The valuation is causing a massive demand for Facebook shares. The Facebook stock price is has opened with a gap to the upside and is flirting with the $230 price mark, $4 north of Walmsley’s valuation.
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Technical Outlook for Facebook
The Facebook stock price is now at its all-time highs, having surpassed the previous mark set in January 2020. Possible extensions to the current upside include a possible run to the 127.2% Fibonacci extension at
253.51, or to 266.47 (141.4% Fibonacci extension). However, the extension of a previous channel shows that the lower border acts as a resistance to further upside. Price needs to navigate around this impediment before any of the higher price targets can be attained.
On the flip side, a stall in upside at current levels may allow for a pullback towards 218.28 (18 February 2020 high) or 208.29 (22 July 2019 and 3 December 2019 highs acting in role reversal).