The Latest on Facebook's Stablecoin
Cryptocurrency has struggled to gain mainstream traction, but the promise of digital coins has attracted the interest of one of tech’s biggest companies. Facebook has explored blockchain-centric projects in the past few years, but a new payment initiative the Wall Street Journal reports is “code-named Project Libra” prominently features digital currency – and has the potential to succeed where other projects have failed.
Facebook has been “recruiting dozens of financial firms and online merchants to help launch” the platform, which sources said would center around a new digital coin that Facebook users could use to “send to each other and…make purchases both on Facebook and across the internet” through theoretical partnerships with internet retailers and apps. The coin would be backed by almost $1 billion, which Facebook has looked to raise from traditional payment figureheads like Visa and Mastercard, who would also help handle “logistics and regulatory burdens.”
The investment “would underpin the value of the coin to protect it from the wild price swings” that have plagued traditional cryptocurrency – creating, in effect, a stablecoin. Mitigating extreme price fluctuation would go a long way to aiding mainstream adoption for cryptocurrencies, but obstacles remain – there has long been a dearth of use cases for crypto in payments, and an “existing system…full of entrenched interests and technology clogs,” plus intense scrutiny on Facebook for a variety of privacy concerns and data misuse, are concerns.
One benefit of a Facebook coin would be the ability to leverage the social media giant’s massive user base, which currently stands at about one-third of the world’s population – including 1.5 billion daily users, many of whom in “developing countries where social-media sites provide the backbone of internet commerce.” To spur adoption, sources indicate that Facebook could create a loyalty point-esque system, “paying users fractions of a coin when they view ads, interact with other content or shop on its platform.” A loyal component and use potential as a payment option across e-commerce, ala PayPal, would give the coin unprecedented traction.
The coin must navigate additional obstacles, including pleasing the payment giants (and stakeholders) whose dominance would be threatened by its success. Sources indicate that the value adds for merchants would be “a break on [swipe and other card processing] fees” of roughly two to three percent that are typical to card transactions; retailers could also “recycle” proceeds from ad-based purchases to buy additional ads.
While there is no confirmed release date, a Facebook coin could prove tremendously valuable for the company, consumers, and retailers alike. Time will tell if it can succeed where others have failed, but there is no doubt that its rollout will be closely watched – and copied if it thrives.
META's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for META turned positive on April 24, 2025. Looking at past instances where META's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where META's RSI Oscillator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 25, 2025. You may want to consider a long position or call options on META as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
META moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for META crossed bullishly above the 50-day moving average on May 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where META advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for META moved below the 200-day moving average on May 06, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where META declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
META broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for META entered a downward trend on April 30, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.177) is normal, around the industry mean (11.896). P/E Ratio (33.034) is within average values for comparable stocks, (50.251). Projected Growth (PEG Ratio) (1.115) is also within normal values, averaging (3.572). Dividend Yield (0.001) settles around the average of (0.027) among similar stocks. P/S Ratio (9.569) is also within normal values, averaging (19.917).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. META’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a social networking service and website
Industry InternetSoftwareServices