Facebook Inc (NASDAQ:FB) has been quiet of late. No major headlines. No revenue or earnings developments. No, well … anything.
While it may not seem like it, this is actually a boon for FB stock. Wall Street is bullish by default, and stocks will tend to drift higher in the absence of any major news. What’s more, the June tech flash-crash notwithstanding, Facebook is already in a long-term bull trend that began in earnest in mid-2013.
Click to Enlarge Throughout this four-year bull rally, FB stock has gained over 500% and been guided higher by stalwart support from its 50-day and 20-day moving averages. Note that FB’s 50-day trendline held firm during the June 9 tech sell-off — which is not something fellow FANG companies like Apple Inc. (NASDAQ:AAPL) or Netflix, Inc. (NASDAQ:NFLX) can boast.
With FB stock now reset, the shares are now poised to resume this long-term uptrend. In fact, $160 would be a reasonable short-term target.
Turning to Facebook’s sentiment picture, we find that brokerage firms are as bullish as they have always been. Currently, Thomson/First Call reports that 40 of the 44 analysts following FB stock rate the shares a “buy” or better. Meanwhile, the 12-month price target of $169.30 represents a premium of only 9.9% to FB stock’s current trading range. As such, the stock has plenty of room for potential price target increases that could add to the upward pressure on the shares.
Facebook stock options traders are also firmly in the bulls’ camp, as the July put/call open interest ratio arrives at 0.67 — exactly where it was perched back on May 18 when I last checked in with FB stock. As I have noted before, low put/call ratios are the norm for Facebook, so this reading has less of an excessive-bullish reading that it would have on other stocks.
Checking in with implieds, July options are pricing in a potential move of about a 4.3% for FB stock. This places the upper bound at about $160, while the lower bound lies at $147.