Facebook (FB) jumped 5.84% or about $ 9.16 yesterday. In pre-marketing, he continued to earn and reached $ 166.20. JPMorgan and JMP Securities have reduced their share price target to $ 215, which equates to gains of around 30%.
The actions of Facebook Inc (NASDAQ: FB) have been winning in the past two weeks, thanks to the fundamentals that protect its actions from the coronavirus pandemic. As of March 30, 4:26 p.m. EDT, the security had increased 5.84% to $ 165.95. Thus, at the time of the report’s publication, it had managed to drop above $ 166, which, in pre-marketing (+ 0.15%), acted as a level of resistance in the short term.
Facebook share price (FB) and relationship with coronaviruses
According to TheFly.com, JPMorgan and JMP Securities have significantly reduced their target prices on the value of the company’s shares. On the one hand, JPMorgan reduced its Facebook 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 evolves in favor, the Facebook stock will have gained about 30%. In general, the market has been green since the bell rang on Monday, and hope is rejuvenating among investors.
However, fear of coronaviruses is still an unresolved issue and continues to make things difficult for most people. At the time of writing, the number of confirmed cases of coronavirus exceeded 785,000, with the United States leading the way among the most affected countries.
After the United States overtook 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 can’t help but wonder why the Facebook stock is gaining day by day.
Reasons for the rise in FB shares
Facebook as a giant tech company has a number of fundamentals that play a significant role in market price volatility. This increase is attributed to the positive call from JPMorgan Bank and JMP Securities, as previously analyzed.
Investors seem to trust the two companies and with their harmonized analysis at $ 215, the 30% remains a crucial gain that most investors can watch losing. However, the company continues to face challenges with revenue collection due to a decline in its ad system.
With the coronavirus pandemic underway, nobody wants to advertise things that have gone down due to deadlocks and quarantines. However, as an American company, it could benefit from the government’s blueprint that uses the $ 2 trillion coronavirus stimulus package to cushion the shock absorption market.
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