Facebook (FB)

Oct 21, 2021Trade Ideas

Investors may want to take advantage of the Facebook (FB) flop.

Over the last few days, the social networking stock fell from about $383 to $318.92, where it again found support at Its 200-day moving average. The last time it caught its 200-day between January and March 2021, the FB stock soared higher. The stock has also become oversold on RSI and MACD.

We’re also not the only ones that think FB is ridiculously cheap.

Jefferies’ analyst Brent Thill, for example, says FB is trading at a 30% discount to the NASDAQ. He also says FB is the most attractive, “particularly on a growth adjusted basis.”

Granted, The Wall Street Journal has questioned if FB can maintain its growth. But don’t read too much into it. Third quarter numbers could be solid with advertising spending increasing.

From a current price of $340.78, we’re bullish – and believe it could retest its $383 highs, longer-term. Near-term, we believe the stock could rise on anticipatory momentum ahead of its next earnings report on October 25.

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