We all know that. The technology sector had no problems in the first half of this year. And, despite the recent downward correction, it is still the sector with the best result in 2017.

The S & P 500 Technology Select Sector Index (IXT) was able to score 13.4% since the beginning of the year, compared with a 7.4% increase in the index itself.

FAANG stands for Facebook, Amazon, Apple, Netflix and Google. These companies are counting on a huge market capitalization and they are definitely very popular with investors around the world.

In a specific situation, I would like to focus on a giant social network – Facebook. Why? First, we are entering the corporate reporting season for the second quarter in the United States and will be following the reports of major technical companies.

Secondly, the company Mark Zuckerberg announced that they are going to expand the display of advertising to Messenger users in the near future. And why is this important? Because the company relies almost entirely on its ability to make a profit from users through advertising.

The company is actively trying to monetize two of its most successful applications — Messenger and Whatsapp. Messenger uses about 1.2 billion people a month, which investors perceive as “Hello, there is a lot of potential here. Soon there will be an increase in profits. “

Facebook shares are not overbought. And this must be taken into account, since shares rose by 30% from November 2016. Investors from Wall Street trust Mark and his team because they have proven that they can change a lot in a short period of time.

Facebook’s plans look promising and the psychological aspect supports them. The technical giant plans to release a report on profits for the second quarter of July 26.

Our prediction: longs.

Leave a Reply

Your email address will not be published. Required fields are marked *