Public relations fiasco is putting it lightly in the wake of the Cambridge Analytica data misuse scandal. Once the news broke that Facebook Inc. (FB) was behind the mishandling of user data that was shared with a politically connected firm during the 2016 presidential race, Facebook’s stock tumbled from $195 to $152 or a 22% slide. Mark Zuckerburg went into damage control mode via rolling out transparency tools, metrics, impacted user details and testifying before Congress. The border questions of potential regulation, public backlash, additional data misuse cases and whether or not any material impact to revenue, as a result, remain in question. Over the past few quarters, Facebook has ramped up spending on initiatives to combat fake news, ensure data integrity, implementing stringent guidelines on third-party data sharing and overall transparency within its platform. Thus far, the early fallout from the Cambridge Analytica scandal has been immaterial to revenue albeit the recent quarterly numbers only reflect roughly two weeks of post-scandal numbers. Facebook had already moved to overhaul its news feed in favor of “meaningful social interactions” versus “relevant content” to improve its user experience.
Despite all the headlines regarding the privacy scandal, Facebook posted a monster blowout for its Q1 2018 numbers. Daily active users rose 13% to 1.45B for March, and monthly active users also rose 13%, to 2.2B as of March 31, 2018. Ad revenues grew by 50% to $11.8 billion from a year-ago $7.9 billion. As a result, many Wall Street firms have increased their target prices as a result of Facebook’s monster growth. Wedbush raised its target to $275, Mizuho to $255; SunTrust to $230; Goldman Sachs to $225, Deutsche Bank to $205 and Stifel Nicolaus to $175. Facebook remains incredibly cheap considering its phenomenal growth with a P/E of 28.7 and PEG of 1.08 at a stock price of $174. I maintain my long thesis with a price target of $220 by the end of 2018. Continue reading "Facebook Posts Revenue Growth Despite Public Relations Fiasco"
Hello traders everywhere. One week after we saw the stock market make gains we've retreated into negative territory. All three indexes are posting weekly losses and continuing to be bound in a sideways trading range. This weeks weakness is due to a rally in crude oil prices, a pickup in government bond yields as inflation rises and geo-political uneasiness around the globe.
The 10-Year Treasury yield hit a fresh seven-year high settling on Tuesday at 3.082%, compared with 2.995% Monday, marking its biggest one-day advance since March 2017. It will end the week above the 3% level at 3.069%
The U.S. Dollar continues to gain strength with a gain of +1.21% on the week. This weeks gain erases last weeks small loss as the dollar looks to heading higher. With green Trade Triangles on the board keep your eye on the $91.28, a move below that level will trigger a red weekly Trade Triangle indicating a move to a sidelines position. Continue reading "Stocks Struggle For Traction Posting Weekly Loss"
I hadn't updated the silver chart since February when I warned you that the metal dangerously approaches the support of the Triangle pattern. After that, I posted a gold update as I found an amazing historical similarity there.
There’s been so much water under the bridge since February, but nothing had changed in the precious metals markets until the end of last month when the crucial trigger was pulled.
Below is an updated chart of the silver that I would like to share with you these days as it contains an excellent trading opportunity.
Silver Weekly Chart: Triangle Was Broken Down
Chart courtesy of tradingview.com
Silver could escape from that troubled situation which I pointed out in February as the price briefly punctured the downside of the Triangle pattern (orange) and then happily reversed higher on the back of broad dollar weakness. Continue reading "Silver Looks Into The Dark Abyss"
Hello traders everywhere. A surging dollar is putting increased pressure on gold driving it down to its lowest levels of 2018 to date. Gold is currently trading below the $1300, it's the lowest level since late December of 2017. With red Trade Triangles across the board indicating a strong downtrend and higher than usual trading volumes expect gold to head lower.
The dollar's continued strength is due to a surge in interest rates. The benchmark 10-year note yield hit 3.095% on Tuesday, its highest level since 2011, while the two-year note yield traded around levels not seen in a decade.
As for stocks, overall the stock market is on the rise with the big mover of the day being Macy's (M). Macy's shares rallied more than 10% on stronger-than-expected quarterly earnings. The company's same-store sales a key metric for retailers, rose 4.2% last quarter versus an estimate of 1.4%.
Bitcoin finally succumbed to the "bitcoin bears" and issued a red weekly Trade Triangle at $8,342.58 while breaking through the 50-day moving average, which could become the next level of resistance if bitcoin were to move lower.
Key Levels To Watch This Week:
Continue reading "Surging Dollar Puts Pressure On Gold"
Analysis originally distributed on May 10, 2018 By: Michael Vodicka of Cannabis Stock Trades
US cannabis stocks got a big jolt last month after President Trump promised to support cannabis.
After taking a short breather, it looks like US cannabis stocks are ready for another push higher.
The MJIC US cannabis index in a formation known as a Bullish Flag – a formation on the chart that frequently leads to an upside breakout and new high.
This Bull Flag is creating a great opportunity. If the index surges higher cannabis shareholders should pick up some nice gains.
Today – I want to reveal a promising young cannabis company headquartered in Canada that is making a big splash in the US cannabis market. Continue reading "Are US Cannabis Stocks Ready To Push Higher?"