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Berger: Facebook not invited to equities rally
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The S&P 500 index and Nasdaq composite hit record highs
last week, but Facebook was notably absent from the rally. Equities moved higher
on the news of a ceasefire between Ukraine and Russia as well as signals of
positive development being made in the deliberations between the European Union
and Greece. Serge Berger, better known as the Steady Trader, says that Facebook
is poised to either catch-up with its peers in the technology sector or set to
decline.
Facebook reported annual revenues of USD 12 billion dollars in January, a 58% increase from the previous year. Despite the company’s increased revenue growth, lower margins in ad revenue caused concern amongst investors. The stock price has been in negative territory for most of the year. Serge states that there is strong technical support for the stock at the USD 73.00 area. If it can push higher he would be a buyer at the USD 78.00 level. He is targeting a move to USD 84.00 with a stop at USD 74.00.
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