Shares of social network Facebook (NASDAQ: FB) slid as much as 9.3% on Monday. As of 3:24 p.m. EDT, the stock was down 7.5%.
The stock’s pullback follows news that the Federal Trade Commission (FTC) was assigned jurisdiction to see whether Facebook’s dominance harms competition, The Wall Street Journal reported.
“The FTC secured the rights to begin a potential investigation of Facebook and whether it has engaged in unlawful monopolistic practices,” wrote the Journal’s Brent Kendall and John D. McKinnon, citing people familiar with the matter.
“The fact that the commission formally secured jurisdiction on those issues suggests it is considering even more rigorous scrutiny of the social media giant,” the authors added.
Many say 2018 was the peak in Facebook due to scandal after scandal after scandal. Specifically it was July of 2018, when the stock drops roughly 20% and lost $120 billion in value after warning that revenue growth will take a hit and slowing user growth.
I have no idea if Facebook peaked or not, but at some point, it becomes the law of large numbers. The law of large numbers indicates that a large entity that is growing rapidly cannot maintain that growth pace forever.
All I can go off of his what the charts are telling me and the charts suggests price is headed down to the daily demand at $142.50.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.