Author
Steve Muchoki
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
Facebook Inc (NASDAQ: FB) stock has been on the winning side for the past two weeks, thanks to fundamentals that are cushioning its stock from the coronavirus pandemic. As of March 30, 16:26 EDT, the stock had pushed higher 5.84% and reached $165,95. Whereby, at the time of reporting, it had managed to clinch above $166, which in the pre-market (+0.15%) acted as a short term resistance level.
Facebook (FB) Stock Price and Coronavirus Relation
According to TheFly.com, JPMorgan and JMP Securities have significantly reduced their target price on the company’s stock value. On one hand, JPMorgan reduced its Facebook stock rating from $225 to $215, while on the other hand, JPM Securities reduced its price target from $250 to a similar target of $215.
If their analysis is respected by the market and it moves in favor, the Facebook stock will have gained approximately 30%. In general, the market has been in green since the bell rang on Monday, and hope is rejuvenating amongst the investors.
However, the coronavirus scare is still a problem that has not been solved, and it continues making things difficult for most people. At the time of writing, the number of confirmed coronavirus cases was over 785,000, with the United States leading the pack of countries mostly hit.
After the U.S. surpassed China with the number of coronavirus cases, it has now confirmed 164,610, according to data updated by the World Health Organization. With that in mind, one cannot help to wonder why the Facebook stock is gaining by the day.
Reasons for the FB Stock Spike
Facebook as a giant tech company has a number of fundamentals that are significantly playing a role in the market price volatility. The rise is being attributed to the positive call by JPMorgan Bank and JMP Securities, as analyzed earlier.
Investors seem to trust the two companies’ and with their analysis harmonizing at $215, the 30% remains a crucial gain most investors can watch to lose. However, the company continues facing challenges with the revenue collection due to a decline in its ads system.
With the ongoing coronavirus pandemic, nobody wants to advertise on things that have fallen in demand due to lockdowns and quarantines. However, as an American company, it might enjoy the government master plan that uses the coronavirus stimulus package of $2 trillion to cushion the market from absorbing all the shock.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
