Facebook slides after leading executive quit: here is what happened
- Facebook shares edged lower on Wednesday after leading executive quit the company
- Carolyn Everson, the VP of Global Marketing Solutions, has left FB, reported The Verge’s, Alex Heath.
- Everson was crucial in making peace with FB advertisers last year during the "Stop Hate for Profit" boycott.
Facebook Inc. (NASDAQ:FB) shares slid more than 1% on Wednesday after news a leading executive quit the company. The Verge’s Alex Heath broke the news on Twitter. He revealed Carolyn Everson, the VP of Global Marketing Solutions, left the social media giant. It happened days after the company’s newly created position of Chief Business Officer went to Marne Levine. Everson was a top contender for the CBO, but it is unclear why she quit the company.
Facebook’s execs shake-up
Everson’s exit comes barely a week after Facebook appointed Levine to take over the role of Chief Business Officer. The newly created position will also take over all of Facebook’s ad businesses and global partnerships.
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Before taking the newly created position, Levine was VP of global partnerships. Reports also indicate that her role will take that of departing Chief Revenue Officer David Fischer.
Facebook is revamping its execs positions to suit its evolving business.
The social networking company’s recent quarterly results showed that it is beginning to make more money outside its traditional banner ads business. But mobile advertising still tops the list in the revenue mix.
FB’s revenue and earnings continue to grow at incredible rates. Analysts expect earnings per share to increase by a whopping 57% this year. Facebook shares trade at a price-earnings ratio (P/E) of 28.29 and a forward P/E of 21.71. The valuation multiples are compelling for a company that promises continuous growth.
Technically, Facebook shares have surged to trade closer to the overbought levels of the 14-day RSI. The stock trades above the 100-day moving average. It retains a bullish outlook despite Wednesday’s pullback.
Investors can target profits at $360.00 in the short-term or higher at $400.00 in the long term. The key support levels are $293.94 and $255.47 in case of a significant price crash.
Bottom line: Facebook is still an exciting stock to own
Facebook share price slid on Wednesday, but that is nothing to cause alarm. The social media giant is one of the most compelling tech stocks to buy now as it shakes up its execs positions.
FB shares retain a long-term bullish outlook ahead of significant earnings growth this year. There is a lot to look forward to for FB investors in the coming quarters.