Facebook shares close lower on Tuesday, company moves a step closer to monetizing WhatsApp

September 6, 2017 11:15 am

According to a post by the Wall Street Journal on September 5th, Facebook Inc (FB) is taking a step further towards monetizing the messaging platform WhatsApp, which it acquired for $22 billion in 2014. However, no description of the paid features as well as no information about when they will be introduced has so far been disclosed.

Facebook shares closed lower for the first time in the past six trading sessions on Tuesday. The stock went down 0.76% ($1.30) to $170.72, after touching an intraday low at $169.57, or a price level not seen since August 30th ($167.63). In the week ended on September 3rd the shares of the social media company added 3.43% to their market value compared to a week ago, which marked the first gain in the past five weeks. The stock has retreated 0.73% so far during the current month, following a 1.61% surge in August. The latter has been a second consecutive monthly gain, but yet, the smallest one since May. For the entire past year, the shares of the NASDAQ-listed company gained 9.93%. The stock has risen 48.39% so far in 2017.

“We’re building and testing new tools via a free WhatsApp Business app for small companies and an enterprise solution for bigger companies operating at a large scale with a global base of customers, like airlines, e-commerce sites, and banks”, WhatsApp said on a blog post.

A pilot program has already been initiated by the messaging service that would present a green badge next to a business contact, which would indicate that a particular business has been verified by the platform.

According to an earlier post by Reuters, charging businesses that are willing to contact clients could be a potential source of revenue for WhatsApp.

According to CNN Money, the 41 analysts, offering 12-month forecasts regarding Facebook Inc’s stock price, have a median target of $195.00, with a high estimate of $230.00 and a low estimate of $98.00. The median estimate is a 14.22% surge compared to the closing price of $170.72 on September 5th.

The same media also reported that 36 out of 44 surveyed investment analysts had rated Facebook Inc’s stock as “Buy”, while 3 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Facebook stock are presented as follows:

R1 – $170.98
R2 – $171.24
R3 (Range Resistance – Sell) – $171.49
R4 (Long Breakout) – $172.27
R5 (Breakout Target 1) – $173.17
R6 (Breakout Target 2) – $173.55

S1 – $170.46
S2 – $170.20
S3 (Range Support – Buy) – $169.95
S4 (Short Breakout) – $169.17
S5 (Breakout Target 1) – $168.27
S6 (Breakout Target 2) – $167.89

By using the traditional method of calculation, the weekly levels of importance for Facebook Inc (FB) are presented as follows:

Central Pivot Point – $169.98
R1 – $174.95
R2 – $177.89
R3 – $182.86
R4 – $187.84

S1 – $167.04
S2 – $162.07
S3 – $159.13
S4 – $156.20

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