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.
Momentum Indicator for META turns negative, indicating new downward trend
META saw its Momentum Indicator move below the 0 level on April 17, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned negative. In of the 85 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for META moved out of overbought territory on April 08, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for META turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 April 05, 2024. 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.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
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 .
The Aroon Indicator entered an Uptrend today. In of 355 cases where META Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 92, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (19.638). P/E Ratio (33.034) is within average values for comparable stocks, (49.308). Projected Growth (PEG Ratio) (1.115) is also within normal values, averaging (3.441). Dividend Yield (0.001) settles around the average of (0.026) among similar stocks. P/S Ratio (9.569) is also within normal values, averaging (110.312).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
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General Information
a social networking service and website
Industry InternetSoftwareServices