Q2 STOCKS TO BUY

Why Facebook Inc (FB) Will Need More Than New Emojis to Top $100

Facebook Inc (FB) has garnered attention from option bears, as it struggles to break into triple-digit territory

Oct 9, 2015 at 10:54 AM
facebook X logo linkedin


The moment we've all been waiting for has arrived: Facebook Inc (NASDAQ:FB) is officially adding new emoji buttons, allowing users to express a wider range of emotions to posts. Beta testing of "Facebook Reaction" is already under way in Ireland and Spain, with plans to roll it out gradually. Shares of the social network are barely budging on the news, up just 0.3% at $92.76.

More recently, FB has been trending lower. The stock hit a record high of $99.24 in late July -- petering out just below the round-number $100 level, and losing 6.5% since. Going forward, the equity's rebound attempts could be stymied by heavy accumulations of open interest at the October 95 and 100 calls, home to roughly 82,000 and 28,100 contracts, respectively.

As a whole, though, the options crowd has been growing skeptical toward FB. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has accumulated a 10-day put/call volume ratio of 0.54 -- higher than all but 15% of readings taken in the last year.

Meanwhile, 93% of covering analysts have handed out "buy" or better ratings on Facebook Inc (NASDAQ:FB), with not a single "sell" to be found. What's more, the average 12-month price target of $111.78 sits in never-before-seen territory. If FB continues to struggle, it could get hit with future downgrades and/or price-target reductions, potentially exacerbating selling pressure.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter