LiteFinance, Facebook Stock Price Prediction (Part 1)
Facebook share price forecast - 2022, 2023 and beyond.
Few people are unfamiliar with the social media platform Facebook these days. Facebook has nearly half of the world’s monthly active users, making it one of the most influential media in the world.
The social media platform is certainly not without controversy, but despite these events, Facebook’s stock price appears to have continued to rise; in 2020, its stock price is still up significantly due to the coronavirus crisis.
Are you interested in buying Facebook stock? Is it a good investment? This article takes a closer look at Facebook stock, historical data, exciting news about the company, opinions from experts, and our Facebook stock predictions for 2021 and beyond!
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A brief history of Facebook
Facebook was founded on February 4, 2004 by Mark Zuckerberg, Dustin Moskovitz, Eduardo Saverin, Andrew McCollum and Chris Hughes. Since its inception, Facebook has become one of the most influential players on the internet. According to website ranking expert Alexa, Facebook.com is the third largest website in the world. Think only Google and YouTube are slightly more important than it.
Facebook is headquartered in Palo Alto, California. Mark Zuckerberg and his more than 25,000 employees coordinate all of Facebook’s current activities. Since Facebook now also owns Instagram, WhatsApp and Oculus VR, the company has a lot of activity.
Facebook’s first-quarter 2018 results were announced on March 17, 2018. “We’re off to a great start to the year,” founder and CEO Mark Zuckerberg said of the numbers, with sales of $12.4 billion in the first quarter of 2018. A year ago, sales in the first quarter were still $9.5 billion. Another striking aspect of these figures is the increase in the number of monthly active users. The number increased by 15% to 2.13 billion. The number of daily users rose 16% to 1.4 billion. Come to think of it, that’s a big number. The current global population is approximately 7.8 billion.
The table below shows Facebook’s revenue, net profit, price/earnings ratio, and earnings per share. In 2017, Facebook managed to reach about $40 billion in sales. Revenue has grown significantly every year, which also has a positive impact on the social media giant’s net profit. If we compare net profit to turnover, we can expect Facebook to have high-profit margins. As a shareholder, you can get a good return in any situation.
Facebook went public on May 18, 2012. Analysts were initially very pessimistic about the company’s ability to generate profits. The dot-com bubble is still fresh, and the analysts seem to be right. In the first few months after the IPO (initial public offering), Facebook shares fell below the IPO price. Over time, it was slowly discovered that Facebook was able to generate good turnover and profits.
Shares have risen sharply since November 2012. In 2013, 2014, 2015, 2016 and 2017, the stock closed above the issue price. This is a big achievement! In November 2012, people could still buy Facebook stock for about $20. And now the price is many times higher!
Share prices are volatile enough for day traders to take full advantage of these stocks. Therefore, there are many good opportunities to take advantage of Facebook stock to make big money in the short term. Facebook’s forecast is positive. It’s certainly interesting to study these stocks over the long term. Mark Zuckerberg still has many plans to implement.
In October 2021, Facebook changed its name to Meta and shared a new vision for the future. According to Mark Zuckerberg, the company wants to connect with a virtual metaspace where all existing technologies and devices will be brought together. Meta now splits its business into two parts: one for social networks and existing apps, and one for all future brands.
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Facebook’s stock price today
Facebook has also been impacted by the coronavirus crisis, with the stock market tumbling in 2020 leading to a sharp drop in its share price. Also known as the Covid-19 Crash and Covid-19 Correction, this stock market crash was a huge and sudden global stock market crash that started on February 20, 2020 and ended on April 7. Meanwhile, Facebook shares are still barely recovering.
While Facebook’s stock price was at a low of $146.01 on March 16, 2020, later that year, Facebook’s stock price reached an all-time high of $ 303.91 on August 26, 2020 . On the Nasdaq, Facebook shares are traded at the current price of $183.92.
Despite years of controversies and a loss of trust due to privacy scandals, Facebook stock seems to be getting tougher. However, the stock price appears to be falling again due to the looming lawsuit.
The outcome of this lawsuit could have a big impact on the future value of Facebook stock. Therefore, interested investors would do well to pay close attention to news about the lawsuit and related developments.
Facebook Stock Technical Analysis
Let’s start our Facebook (Meta) stock forecast by looking at the monthly forecast chart.
The Facebook/USD price chart above shows that Facebook stock has been in a stable long-term bullish trend over the years.
The strong bull market momentum that started in March 2020 continued into August last year. To gain a deeper understanding of the phases of the stock price change, let’s add a Fibonacci grid to Facebook’s trends, dividing it into functional areas.
- Gray — Trend bottom or low point area where the risk of a reversal increases.
- Red and yellow — stock price consolidation zones.
- Green – Peak area.
Looking at the price history, in August-September 2021, Facebook shares reached $384, breaking the lower boundary of the peak zone. By convention, prices don’t stay in this area for too long. After the stock price reverses, a long-term corrective trend is formed in the market and then sharply enters the trend base zone.
The current situation suggests that Facebook’s stock price will continue to fall in the future on the monthly time frame, with the benchmark at the bottom of the gray area.
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Facebook stock forecast for the next three months
Let’s continue our technical analysis of Facebook’s daily time frame. To make a realistic forecast, let’s expand the list of available signals and the MACD indicator.
The above Facebook forecast graph shows that the indicator curve crosses the signal line from top to bottom, rushing towards the zero line at an acute angle. Combined with the recent stock price slump, this signal confirms our hypothesis about the start of a long-term corrective trend.
The weekly technical chart also shows that the main price objective for the next few months is the lower border of the lows area. Facebook’s forecast decline is likely to be gradual, as short-term corrections are usually accompanied by strong gains.
After reaching support in the $200-$210 area (marked by the red line in the chart), Facebook shares will roll back to the upper border of the gray area of $230-260 by the end of March. After the correction ends, Facebook stock is expected to continue falling until it hits the trendline.
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Facebook long-term share price forecast for 2022/2023
To further evaluate the predicted price and make a prediction for Facebook stock in 2022, let’s use Bollinger Bands.
In the price chart above, I’ve added two versions of the bands with coefficients 1 and 2. With the help of this tool, we can easily understand Facebook’s price history and look for patterns. This price prediction is based on the change in the width of the Bollinger Bands. These forecasts are represented by orange lines in the graph.
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