Facebook shares fall the most in 2 1/2 months on Wednesday, WhatsApp video call security issue, discovered earlier, is now resolved

October 11, 2018 8:15 am

According to a report by tech website ZDnet on Wednesday, a vulnerability in Facebook’s WhatsApp service enabled hackers to take over applications from users once the latter responded to an incoming video call on their Apple and Android smart phones.

Facebook shares closed lower for the seventh time in the past nine trading sessions on NASDAQ on Wednesday. It has also been the steepest daily loss since July 26th. The stock went down 4.13% ($6.52) to $151.38, after touching an intraday low at $151.31, or a price level not seen since April 4th ($150.51).

Shares of Facebook Inc have retreated 14.21% so far in 2018 compared with a 4.19% gain for the underlying index, S&P 500 (SPX).

In 2017, Facebook’s stock surged 53.38%, thus, it outperformed the S&P 500, which registered a 19.42% return.

An on-line technical disclosure report showed that the issue was discovered in late August and then resolved earlier this month.

“This is a big deal,” Travis Ormandy, a researcher at Google Project Zero, said in a post on Twitter, cited by Reuters. “Just ++answering a call from an attacker could completely compromise WhatsApp.”

It remains unknown if hackers ever used the vulnerability in an attack before a fix was issued.

According to CNN Money, the 44 analysts, offering 12-month forecasts regarding Facebook Inc’s stock price, have a median target of $201.00, with a high estimate of $250.00 and a low estimate of $140.00. The median estimate represents a 32.78% upside compared to the closing price of $151.38 on October 10th.

The same media also reported that 34 out of 48 surveyed investment analysts had rated Facebook Inc’s stock as “Buy”, while 7 – 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 – $151.96
R2 – $152.55
R3 (Range Resistance – Sell) – $153.13
R4 (Long Breakout) – $154.89
R5 (Breakout Target 1) – $156.94
R6 (Breakout Target 2) – $157.76

S1 – $150.80
S2 – $150.21
S3 (Range Support – Buy) – $149.63
S4 (Short Breakout) – $147.87
S5 (Breakout Target 1) – $145.82
S6 (Breakout Target 2) – $145.00

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

Central Pivot Point – $159.80
R1 – $163.41
R2 – $169.48
R3 – $173.09
R4 – $176.69

S1 – $153.73
S2 – $150.12
S3 – $144.05
S4 – $137.97

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