Inside the Ambitions of Facebook's Crypto Team
When news leaked in May that Facebook was forming a team around blockchain, there was little of substance for the curious to sink their teeth into. It was revealed that David Marcus, the former head of Facebook’s Messenger platform, was stepping down from his board post at Coinbase to lead the team – a natural choice, as former president of PayPal and overseer of Messenger’s chatbot commerce and peer-to-peer payment functions.
There has been minimal additional news – a company spokesperson told TechCrunch that Facebook is “…still in the very early stages [of developing the team] and we are considering a number of different applications for the blockchain. But we don’t have anything else to share at this time.” That has not stopped speculation about what they might work on, however.
Some parties believe that Facebook could introduce its own token and cryptocurrency wallet, which people could use to pay for products linked to through Facebook ads or from partnered businesses. Blockchain makes transaction fees minimal (or even zero), so Facebook could use the increased margin to offer promotions encouraging users to adopt its cryptocurrency. It is uniquely positioned to leverage its relationships – the platform features six million advertisers and 65 million businesses with Facebook pages – and could use its theoretical token to boost sales for customers, who would then be inclined to purchase more ads.
Facebook could also build on its existing system for sending money through Messenger, which currently only supports connected debit cards or PayPal accounts. By offering crypto-based micropayments, the company could increase engagement with the existing 1.3 billion users on Messenger and even expand the offerings to include payments to their favorite content creators. This extension of their new Facebook Stars virtual currency (which allows users to send digital coins in appreciation, which creators can then cash out for one cent each, after Facebook takes an undisclosed cut) could also include a tip system, which would be an effective draw for both users and content creators to their platform.
The company may even be able to ease the convoluted login process for dapps (pronounced dee-apps; short for decentralized apps), which requires long, alphanumeric keys. Facebook has significant experience designing user-friendly platforms – some, like Facebook Connect, use secure, single sign-on systems that allow users to instantly join associated apps without creating or re-inputting information. They also have a strong security record, without the major, hacker-led data breaches that have plagued other tech companies. Combining those traits would lead to a superior user experience, which could further dapp adoption across the board.
Where Facebook goes with their blockchain program is an open question. But with significant resources, some of tech’s brightest talent, and tremendous brand recognition, the tech giant is uniquely positioned to have success with cryptocurrency and blockchain – in whichever capacity they decide to approach it.
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Aroon Indicator for META shows an upward move is likely
META's Aroon Indicator triggered a bullish signal on May 26, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 279 similar instances where the Aroon Indicator showed a similar pattern. In of the 279 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 17, 2023. You may want to consider a long position or call options on META as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for META just turned positive on May 18, 2023. Looking at past instances where META's MACD turned positive, the stock continued to rise in of 46 cases 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 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 26, 2023. 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.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 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 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
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 (5.382) is normal, around the industry mean (21.614). P/E Ratio (32.468) is within average values for comparable stocks, (40.835). Projected Growth (PEG Ratio) (0.908) is also within normal values, averaging (3.151). Dividend Yield (0.000) settles around the average of (0.023) among similar stocks. P/S Ratio (5.952) is also within normal values, averaging (10.046).
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