The long-term Facebook chart has an interesting shape and very clear support. After being rejected from its long-term resistance line, it about 50% so far and appears to be heading lower. Coincidentally, the 100 month moving average support will line up perfectly with the support line if it is touched soon. An RSI trendline also looks to be touched at the same time as the price support line.
The stage is set for earnings to be dissappointing. Like with Netflix, user growth may be pessimistic, and forward guidance will need to incorporate Android's new privacy data tracking changes.
As a conclusion, Facebook has about 10% downside until major support is reached. However, if earnings are very negative and this trendline is broken, there is virtually no support left and FB could head much much lower. When growth companies like Netflix, Facebook, etc. no longer predict growth, financial models don't seem to know what to do with them.
The stage is set for earnings to be dissappointing. Like with Netflix, user growth may be pessimistic, and forward guidance will need to incorporate Android's new privacy data tracking changes.
As a conclusion, Facebook has about 10% downside until major support is reached. However, if earnings are very negative and this trendline is broken, there is virtually no support left and FB could head much much lower. When growth companies like Netflix, Facebook, etc. no longer predict growth, financial models don't seem to know what to do with them.