FB: Buybacks Buoy Stock but Privacy Issues Remain a Problem

Facebook, having been pressured by the European authorities for numerous privacy violations and illegal use of its customers’ personal information, is trying to mitigate the risk of criminal charges as well as monopoly charges. Mark Zuckerberg has announced that FB is concerned with the privacy of its customers. He claims, without any details or explanations, that the platform will be more focused on privacy. He is also making some features specific to certain modes of communication.

All of this will impact FB’s stock price. Currently FB has some buybacks in play this year. The intermediate term bottom formation is not completed, and volume is very low. The Institutional Holdings Percentage has declined and even with the recent gap up, the stock has plenty of work to do to create strong momentum energy to move it up further. The changes FB is making may or may not make its customer base happy. That remains to be seen. It also is likely to impact revenues growth.