Facebook Looks to Rebound from Tech Sell-Off but Election Weighs

Facebook was 1.9% higher in the first half hour of Wednesday trading as the stock rebounds from weakness in tech stocks. The Nasdaq sold off heavily on Monday and Tuesday on news of a potential coronavirus vaccine by year-end.

The Nasdaq was hit by the drop in valuations of tech firms that have benefited from the lockdowns, via Work from Home technology, or online shopping growth. Facebook doesn’t fall into either of these as their income is advertising-related. The company would likely benefit from a return to normal business relations and activity.

Facebook saw a strong third quarter and this helped to alleviate any fears over the ad boycott in the summer over what was seen as the company’s failure to regulate the platform and tackle hate speech. Revenue for Q3 was almost $21.5bn, which was a 22% gain on the year previous. Advertising represented 99% of that figure.


For Facebook the key event for 2021 will depend on who resides in the White House. The Department of Justice under Donald Trump has targeted the tech firms for anti-trust lawsuits, while Republicans have been critical of the company for silencing conservative speech. Any further action against Facebook would depend on the power structure of Congress and the Senate.

Facebook Technical Outlook

Facebook has pulled back this week ahead of the $300 level and this will be key to any further upside. If we see further bearishness this week then the $250 level will come into play as support. The target below there is $220 with the 50 moving average. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching

Don’t miss a beat! Follow us on Telegram and Twitter.

Facebook Daily Chart

More content

Related Posts: