Is This The Turning Point For Facebook (fb)?

Discussion in 'Investment Charts' started by Chartman, Mar 20, 2018.

  1. Chartman

    Chartman Senior Investor

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    After getting caught up in a political storm, is this a turning point for FB? Time to sell or time to buy?

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  2. Buyonthedips

    Buyonthedips Senior Investor

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    Facebook can try as hard as it wants to wash its hands of the whole affair but this has the potential to seriously damage the company’s reputation. It also has the potential to open a whole new can of worms for the social media industry which seems to thrive behind-the-scenes from selling/sharing data. I would not touch this company with a barge pole at the moment.
     
  3. Chartman

    Chartman Senior Investor

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    Personally I dont think we have seen THE big sell-off yet. There may well be a time to make money on the bounce but I fear there is still a lot more bad news to come.
     
  4. Buyonthedips

    Buyonthedips Senior Investor

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    Totally agree - very soon the bad news will tip investors over the edge and smash historic support levels. When there are things like this going on, selling momentum can take time to build but as more and more investors become concerned this is not a short term issue, we approach the massive sell off at the end - and then the rebound :)
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    One of the problems which I see is the fact that the current developments with Cambridge Analytics were apparently first flagged to the company back in 2015. It is only after more details were revealed that Facebook has actually reacted and even then Mark Zuckerberg’s statement was not an apology as the company seems intent on washing its hands of any blame. Until investors are sure there are no more skeletons in the cupboard I cannot see a significant recovery in the share price but I would be tempted to buy when the inevitable panic sell-off arrives at the end of the downtrend.
     
  6. Buyonthedips

    Buyonthedips Senior Investor

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    FB is now touching lows last seen 12 months ago - I think there is more bad news to come and an eventually massive sell-off from the bulls who are struggling to let go. FB is not finished by any stretch of the imagination but it does not have a friend in the world just now.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I have a small investment in FB, but it looks like they've got big problems.

    I just may be writing them off as a tax loss eventually, unless they can figure a way out of this mess in pretty short order. They may well have peaked.
     
  8. Chartman

    Chartman Senior Investor

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    Personally I believe that Facebook will come again at some point but it could go significantly lower before the recovery begins. Is it time to jettison Mark Zuckerberg? Has he become larger than the company and a detriment to the share price? I noticed that he has refused to attend a UK meeting about Facebook with MPs in the Houses of the Parliament even though the UK is a significant market for Facebook. In some ways you can compare Mark Zuckerberg to Elon Musk, in terms of wealth and business success, but Elon Musk tends to avoid outright crisis and even if they are emerging he has a knack of nipping them in the bud.
     
  9. longtermbull

    longtermbull Administrator Staff Member

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    It looks as though there is a lot more to this than meets the eye - FB is being dragged into get more election campaigns via Cambridge Analytics. What more bad news lurks below the surface?
     
  10. Chartman

    Chartman Senior Investor

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    Can Mark Zuckerberg hold on to his role as CEO? Is he the man to lead FB forward? Many would argue he is untouchable because he owns so much of the company BUT what if him staying in his role held the shares back, he would then suffer financially. Time for a new broom a FB?
     
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