Let’s not forget that Facebook posted record profits and revenue in 2018 despite growing concerns over its treatment of user data and its role in the spread of fake news.
Facebook has been spending on improving the customer experience ever since the Cambridge Analytica scandal. Therefore, costs are expected to have increased and we could see these cut into Facebook’s bottom line.
Facebook chart
The share price is trading at approximately the same level after the profit warning in July, which saw it dive 17%. Facebook is up some 9% across the year to date – in line with the S&P. Shares are still some 16% from their record high.
Impressive results could see Facebook extend the current rally through resistance at $188.40 towards resistance at $192.40 and on to $203.