close icon

Facebook, Twitter and LinkedIn are falling?

Facebook, Twitter and LinkedIn are among the biggest internet companies and still they are loosing big chunks of value.
Facebook is one of the biggest social networks in the world and has been in a big uptrend since September 2012. The company had two big impulsive rallies, which brought its value up almost five times. Since it is too early and more data is needed for a one-sided opinion, we will show you two possible developments – bullish and bearish.

According to the bullish scenario, Facebook has a three-wave structure, which means that it could have a little more upside to come for waves 3 and 5, separated by the corrective wave 4. Its not a good idea to trade fifth waves, if we do not have a clear flat or a triangle for the fourth wave, so it is best to wait for the market to clear the situation up.

facebook

Since the market is never wrong, we have to be ready with a bearish scenario, because the rally, which started in September 2012, could end up as a three-wave pattern. Yet we do not have any confirmation or indication, that Facebook will continue to rise. It is up to the market to decide.

facebook

If price makes a fresh new low under 55 dollars per share, the bearish scenario will gain more confidence and maybe Facebook will follow its counterparts.
Next on the list is Twitter, which has lost almost of all of its gains since December 2013. Twitter has a completed classic five-wave structure to the upside and could be forming a bottom now, after losing 44% of its value during the double zig-zag that followed.

twitter

If this is the correct count, Twitter should bounce up in the near future.
Similar to Twitter, LinkedIn also has a completed impulsive wave up, but only one of three finished corrective waves – W. We expect to see price action down to the 61.8% Fibonacci level around 140.

linkedin

In one of our previous articles we warned investors about a possible meltdown in the stock market. It is too a early to say, whether this is a sign or not, but you should keep it in mind.

For those, who are not familiar with the Wave Principle, here is a sample picture of what happens when the five wave structure ends.

elliott wave principle

Check our education category for more info and specially our article about the basic Elliott Wave Patterns. You may also find one of our infographics useful.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

MongoDB – Bearish Pattern Joins Nosebleed Valuation

MongoDB Inc. is a general purpose database platform developer and provider. The company was founded in 2007, but only came public ten years later – in 2017. During the following four years, the stock has risen from an IPO price of $33 to $515 a share as of last week. So, it is fair to…

Read More »

Pandora Does Things Right. Stock May Need a Breather

When we wrote our previous article on Danish jewelry maker Pandora in December, 2020, the stock was up over three-fold since March. That recovery from DKK 180 to DKK 651 didn’t not come out of the blue, though. It was the result of a bullish setup we managed to identify as early as July 2019.…

Read More »

Match ‘s SP500 Inclusion a Good Excuse to Reach $200

Match Group Inc. rose over 10% in post-market trading Friday following reports that it is going to be included in the S&P 500. The company, which owns Tinder, OkCupid and most other major dating apps in the U.S., has a market cap of over $41B. Despite the anticipated “summer of love”, though, this is not…

Read More »

Cameco Stock Seems to Have Finally Turned a Corner

Uranium spot prices are on the verge of breaking above $34/lb, up over 80% from the bottom of $18/lb reached in late-2016. Cameco, as one of the world’s top uranium producers, is now seeing its stock price rising in tandem. Yesterday, it closed at $19.16 after reaching $21.95 in June. We first covered Cameco in…

Read More »

A Fresh Look At Cigna ‘s Elliott Wave Super Cycle

In a case study article on Cigna, published in October, 2016, we examined how a fundamentally sound and undervalued stock can still drop nearly 90%. The reason for that crash didn’t lie in some company specific issue. Rather it happened to occur during the biggest financial crisis in 80 years. Nevertheless, we made the point…

Read More »

CBOE Takeover Rumor Lifts Stock to Elliott Wave Target

We first wrote about CBOE Global Markets less than eight months ago. The S&P 500 had already recouped all its COVID selloff losses and was hovering at new all-time highs. CBOE, in contrast, was still down 30% from its 2018 record, trading below $97 a share. For some reason, the market was ignoring the company’s…

Read More »

Ahead of Ulta Beauty ‘s 150% Gain Since Lockdown

Buying shares in a beauty retailer in March 2020 sounded like a crazy, stupid idea. Stock markets around the world were plunging at a record pace amid a global GDP crash resulting from government-enforced lockdowns. People were stockpiling necessities in preparations not to leave their homes in the foreseeable future. With COVID-19 cases rising everywhere,…

Read More »

More analyses