On October 4, 2021, there was a global internet blackout. Famous social media users from different countries have complained about problems accessing both the apps and the web versions of Facebook and Instagram. Facebooks crash was the longest since 2008.
Instagram Options in 2021/2022
Instagram founders Kevin Systrom and Mike Krieger resigned a month before the Instagram and Facebook crash. The news of the departure of the ideologues of the project caused a drop in the shares of Facebook, which bought Instagram six years ago.
The reason for the departure of top managers and Instagram founders Kevin Systrom and Mike Krieger was a disagreement with Facebook owner Mark Zuckerberg over a photo-sharing application, according to the New York Times, citing its own sources.
Krieger and Systrom were unhappy with the active involvement of Zuckerberg, who began to rely more on Instagram in planning the future of the social network. This marks the second resignation of founders of companies that Facebook acquired in a year.
Similarly to Facebook options, Instagrams have also undergone dramatical fall.
If the year 2022 is considered, its pretty impossible to count for the positive trends. Nonetheless, if Instagram Reels payouts would be really implemented, theres a big chance to have the options prices jump.
In this case, its pretty paramount to follow the pieces of advice by the account managers, and if you trade with Exness, youll have plenty of ideas. So, just download metatrader 4 for mac or any other device to keep posted.
Facebook Options in 2021/2022
A new generation of investors has entered the stock market during its spectacular growth in recent years. This is why they should learn a lesson from Facebook’s plummeting stock amid a social media technical glitch.
Any stock, even the most famous one, under certain circumstances can sag strongly and for a long time.
Officially, in accordance with NASDAQ, Facebook lost 5.7% because of the recent blackout. The Facebook press service has already reported that the reason for the force majeure is a violation of network traffic.
Meanwhile, the world is talking about a large-scale cyberattack. But this information has not been officially confirmed.
The researchers data add fuel to the fire. According to experts’ forecasts, by 2022 the damage caused by cybercriminals should have reached $6 trillion (and depending on the true reasons for October blackout, the numbers may change).
If we talk about the financial performance of Facebook’s business, the forecasts for the results of the third and fourth quarters are not yet positive. Some analysts expect revenues of $ 29.5 billion in the first quarter of 2022. If they turn out to be right, the yoy growth will be lower than in previous years.
The forecast for the size of net profit even more clearly reflects the potential slowdown in dynamics: $ 9.1 billion and $ 11.19 billion in the third and fourth quarters, respectively.
Doubts About That Should I?
A technical disruption affecting billions of Facebook and Instagram users on October 4 not only led to a drop in Mark Zuckerbergs stock, but also to a decline in major US stock indices.
Bad news of this magnitude makes you think about changing the market trend every time. The bull market, which has been going on for over 12 years, appears to be coming to an end. Is it so in reality?
From the technical point of view, the quotes have reached the previously designated target for a decline of $ 330. Its possible to admit that in the near future the price may bounce to the level of $ 340345, after which it will most likely continue to fall to the range of $ 290310. To revise the forecast, it is necessary to change the negative fundamental factors.
If the price drops to the indicated levels, its possible to recommend returning to the consideration of the issue of purchasing Facebook shares, re-evaluating the company’s position.
Investors should take into account that all events are taking place against the backdrop of a new stage of litigation with the US Federal Trade Commission (FTC).
Earlier, the court dismissed a claim from the regulator aimed at forcing the company to sell Instagram. But the FTC filed a new complaint in mid-August.
The combination of all the events that happen to Facebook right on the eve of the trial, makes you think about the man-made processes.
There are too many interested partiesthe political motive is obvious, and the real lobbyists from a material point of view are representatives of the financial sector. They were pretty happy about some of the tech giants’ initiatives that began to threaten their position: for example, Facebooks plans to launch its currency, Libra.
It is necessary to clearly understand that the companys securities are now subject to a strong regulatory risk, the possibility of which is high.
Considering that Facebook is the cheapest company in the FANGMAN sector, which trades with a forward P / E (2022) 21x and at the same time demonstrates outstanding profit growth rates (101% YoY in 2Q21), the stock will not be in a downtrend for long.
By the way, Wall Street’s current consensus forecast assumes their growth by 23% over the next 12 months, up to $ 422.48 per share.
Summary
What conclusions can be drawn here? They are quite simple. First, the prehistory of this crisis is in many ways similar to what we see now.
Before crashing, the stock market rallied tremendously. Suffice it to say that 12 months before the crisis, the Nasdaq Index added 101.5%.
Secondly, the saddest lesson is that after a cheerful and perky feast, many years of recovery can come. This is what the modern investor is not ready for at all.
In any case, the main advice to stick to in this situation is to trade with a reliable broker. Why so? The account managers working with Exness are always aware of the most recent events on the markets and possess the most precise forecasts.