Facebook Inc’s share price broke the $300 mark for the first time ever on Wednesday, sending shares higher by 8.2%.
This comes as stock analysts praised the company’s new shopping section which is projected to become a strong contender in the e-commerce space, with strong growth potential for the social media giant.
The Facebook stock has been showing some upside after the company diversified its portfolio to include e-commerce, which will most likely attract users, and increase time retention spent on the social platform.
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In addition, breaking the $305.00 price level is the expected short-term upside target, if prevailing macros are maintained.
The daily time frame shows that the stock had broken the inverted head-and-shoulders pattern. It is, therefore, projected that the stock is most likely to stay above its $280 price support before a medium-term technical correction occurs.
Stock traders are likely to increase buying pressures on the stock if it plunges as low as $250.00 in anticipation of more upside
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The stock closed at a record $303.91, rising for a third straight day. JMP Securities, which rates Facebook at a buy-equivalent rating of market outperform with a price target of $305, said there are “multiple catalysts” for Facebook, and e-commerce “can be a significant opportunity.” There is “a clear line of sight to monetizing” the new section, dubbed Facebook Shop, according to analyst Ronald Josey in a note to Bloomberg News.
About Facebook Company
Facebook, Inc. is an American social media conglomerate corporation based in Menlo Park, California. It is one of the world’s most valuable companies, and considered one of the Big Five technology companies along with Microsoft, Amazon, Apple, and Google.
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Facebook offers other products and services beyond its social networking portal including Facebook Messenger, Facebook Watch, and Facebook Portal. It has also acquired WhatsApp, Instagram, Giphy, Oculus VR, and Mapillary, and has a 9.9% stake in Jio Platforms.
