Facebook’s Ad Blackout: Bank It or Tank It
- Major businesses including Coca-Cola and Ford are seven days into a Facebook boycott.
- The ad blackout has cost the social media giant millions of dollars, but it hasn’t hurt Facebook’s stock price — yet.
- Chartered Market Technician Chad Shoop breaks down the future of the company’s shares in his latest Bank It or Tank It video.
Seven days into an advertising boycott against Facebook (Nasdaq: FB), the social media giant is on the ropes.
You see, businesses pay to have their ads featured as sponsored content in the Facebook app and on the website. This ad revenue is where Facebook makes its money.
And after a week, the boycott has cost Facebook millions in advertising dollars worldwide, as brands including Coca-Cola and Ford take the month off.
The company and its chief executive officer, Mark Zuckerberg, are regularly subject to accusations of racism, hate speech, election meddling and unjust firings.
And now, companies and regulators have added to the social pressure for change at the $670 billion company.
The stock hasn’t seen the impact … yet.
Facebook was one of the few stocks that traded at fresh all-time highs ($245.19 per share) as the platform benefited from a stay-at-home environment.
With bars and restaurants in some states reopened — or planning to in the near future — Facebook needs to capitalize on this momentum and push shares even higher.
The risk now is that the weight of the boycott will cause the share price to plunge in the coming weeks.
Today, I’ll break down the fundamentals, sentiment and technical analysis to see if Facebook is a stock you want to bank on or tank over the next 12 months.
Click below to watch my latest Bank It or Tank It and get my insights on Facebook:
And be sure to leave a comment on the video to suggest stocks you’d like me to cover in future editions of Bank It or Tank It!
Chad Shoop, CMT
Editor, Quick Hit Profits