Facebook’s (FB) current three-session losing streak after approaching its all-time high of $82.17 has now prompted the stock to break a major support level at $78.50. Shares are trading lower by $1.70 at $77.74 in today’s session after printing a lower than average trading volume with the issue currently trading 16.72 million shares, compared to the average volume of 25.66 million. The stock began trading this morning at $78.56 to currently trade 2.14% lower from the prior days close of $79.44. On an intraday basis it has gotten as low as $77.68 and as high as $79.26.
If such a sell signal would continue to persist after the name’s first significant recovery attempt from the current slide has taken place, then ticker will most likely proceed toward retesting its next support at the $75 level.
On valuation measures, FB shares are priced at 69.92x this year’s forecasted earnings, which makes them quite expensive compared to the industry’s 10.28x earnings multiple. The company’s current year and next year EPS growth estimates stand at 10.20% and 31.80% compared to the industry growth rates of 20.00% and 20.10%, respectively. FB has a t-12 price/sales ratio of 17.84. EPS for the same period registers at $1.11.
FB’s shares have advanced 5.07% in the last 4 weeks and 5.58% in the past three months. Over the past 5 trading sessions the stock has lost 0.39%. Shares of Facebook, Inc. are up 1.82% this year.