Facebook has more advantages than Snap, traders say. Key level to watch
Facebook or Snap?
This week, analyst firm Wedbush breathed new life into the rivalry, downgrading Facebook over concerns over Apple’s new privacy measures and upgrading Snap with a nod to its platform. innovative and to its younger clientele.
Two market analysts would take the other side of the trade, they told CNBC’s “Trading Nation” on Wednesday.
“I’m friends with Facebook and would block Snap here,” said Delano Saporu, Founder and CEO of New Street Advisors Group.
“I think we’re going to see ad revenue stay where it is, at least be maintained and obviously grow, but there is also a way for Facebook and a lot of those social media platforms to grow and diversify their revenue.”
Saporu cited Facebook’s testing with Instagram badges, which users can purchase to support creators on the platform.
“You’re going to see social media platforms making money out of it as being the middle person,” he said. “So I think there is still room to develop for Facebook, obviously. Snap had such a great run. I wouldn’t look for it here.”
The technical layout supports that appeal, said Matt Maley, chief market strategist at Miller Tabak.
“Both charts look pretty good, but I agree with Delano that Facebook has the most positive potential here,” he said. “The stock has been stuck in a side range for eight months, and any time you break out of a long range range like this, it usually sees a good run.”
Facebook did so last week, and although it fell back this week after being slightly overbought, it could rebound in a big way, Maley said.
“He can pull back a bit below 300. That’s okay. But if he gets past that level of 315 … he’s going to attract the kind of momentum money he hasn’t seen since. many months confirming the breakout and it’s really going to skyrocket higher, ”he said.
Facebook closed more than 2% lower at $ 302.82 on Wednesday.