We'll see how Congress grapples with those issues, and others, when they grill Facebook CEO Mark Zuckerberg when he testifies before them this Tuesday (Senate) and Wednesday (House).
Facebook faces similar scrutiny by other countries over the coming weeks, so their issues are global and not likely to be resolved overnight.
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| Source: Reuters via Investing.com |
Meanwhile, FB is hovering above its very long-term 23.6% Fibonacci retracement level of 153.37, after being broken twice during the past two weeks, as shown on the following weekly chart. A break and hold below that level could send it down to its next major Fib support level at 127.41, or lower.
You'll note that the momentum indicator plunged to and closed at a new all-time low last week. It's trading well below the zero level, so that, combined with uncertainty tied to global investigations into its business practices (as well as users pondering whether to delete their accounts and advertizers rethinking their strategies), tells me to expect continued volatility and wild price swings for some time to come.
* UPDATE April 11 at today's Congressional (House) Hearing...
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Question of the Day: Mr. Zuckerberg may be able to "perform" (from a PR perspective as he did in front of Congress this week), but can he actually deliver on all of his promises to, not only work with Congress, but to satisfactorily fix all of the problems at Facebook, as well? We'll see.
One thing's certain, however...this won't be his last appearance before Congress, as was impressed upon him by some of them during the hearings.
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Lastly, one question asked by Congress is now answered. During the hearings, Mr. Zuckerberg insisted that FB is a tech company...that may be the case now, but will move out of the Information Technology Sector and will, instead, become part of a new Communication Services Sector in September 2018.
As such, presumably they would be subject to those regulations and government oversight that are imposed on media companies.
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| Click this link for Press Release issued by Standard & Poor's November 15, 2017 |
List of Existing Major Sectors
* UPDATE April 23...
* UPDATE May 5...
Perhaps Facebook can foot the entire bill (get used to it...these "geniuses" will soon be running the country)...
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| Click link to read article at ZeroHedge.com |