Facebook: Targeted Advertising Faces Danger

Facebook: Targeted Advertising Faces Danger

2021-07-29 • Updated

What happened?

Facebook presented an earnings report on July 28. The company showed higher than expected results but mentioned that growth rates might slow down in Q3. The social media giant is concerned about Apple Inc.’s new rules which pinch data collection on mobile devices and advertising gains reduction after the pandemic bump. Facebook’s shares price dropped by 5% in the post-market trading session after the announcement.

How can it affect the company?

Investors are concern that Facebook’s sales growth rates might slow as after the pandemic as people will spend less time on phones and laptops. Moreover, the situation gets worse as Apple’s new restrictions on data collection on iPhones prohibit tracking users’ activity and collect data without permission. This novation could put a negative effect on Facebook’s revenue as targeted advertising is a crucial Facebook tool that has given it an edge with large brands and small businesses looking to reach precise groups. According to Brach, which analyses mobile app growth, only 1 out of 4 users allow tracking their activity.

Facebook noticed that new policies in users’ privacy can make incredible damage to the small business sector, which doesn’t have enough resources to spend on broader marketing campaigns.

Plans for future

Chief Executive Officer Mark Zuckerberg said the company will work on the creation of a “metaverse”, a virtual space where people can communicate with each other using social platforms. Oculus, Facebook’s hardware division, last year unveiled Quest 2, an all-in-one virtual reality headset. The company is also building an augmented reality-powered wristband and glasses.

Facebook’s future also contains creating e-commerce tools for small business advertising. The service will allow potential customers to try on products in virtual space.

Those innovations might be able to solve Facebook’s problem with Apple’s restrictions and protect its digital advertising revenue from being reduced.

Technical analyses

4H Chart

FACEBOOKH4.png

US100 4H Chart

US100Daily.png

Facebook is trading at $360 on pre-market, Thursday 29. On the US100 chart, the bearish divergence occurred. Facebook’s stock price correlates with the US100 index as it is one of the biggest companies included in NASDAQ. If NASDAQ drops, the Facebook stock price will follow it. In this case, the price will be heading to $341. At this point, it will be very important for US100 and Facebook to hold 14500 and $341 levels respectively. If they do, the price will fly to an all-time high. Otherwise, there will be a good shot trade opportunity with a potential target of $300.

  1. First of all, be sure you’ve downloaded FBS Trader app or Metatrader 5. FBS allows you to trade stocks only through this software.
  2. Open an account in FBS Trader or the MT5 account in your personal area.
  3. Start trading!

TRADE NOW

Similar

Time to Short US Economy
Time to Short US Economy

Why? Despite the fact that analysts and experts have been predicting the US stock market crash during pash year S&P500 doubled since March 2020 crush and NASDAQ is also gaining permanently…

Latest news

What To Trade In March
What To Trade In March

The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.

CHF: Key Zone Could Yield Strong Reactions
CHF: Key Zone Could Yield Strong Reactions

USD/CHF saw a rebound after declining for two days straight, climbing towards the important psychological level of 0.8800 during Wednesday's early Asian trading session. There's some pressure on the Swiss Franc (CHF) as traders await the Swiss ZEW Survey – Expectations report scheduled for later today. Moreover, investors are keeping...

USD Expected To Recover Some Strength
USD Expected To Recover Some Strength

In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera