Facebook, Inc. (NASDAQ:FB) is sitting on an important support level. There’s a chance the shares could stage some type of rebound, but if the support breaks, they could go into a steep decline.
Support is a large concentration of buyers who are looking to pay the same price for shares. In this case, it's $330.
At support levels, there is more demand for the stock than there is supply. This is why sell-offs end when they reach them.
But when a support level breaks, it means the buyers who created the support have finished or canceled their orders. Either way, experts say, they have left the market.
What’s more, Facebook announced plans to launch Clubhouse-esque Live Audio Rooms and exclusive podcasts with a vague summer launch date. The features are now soft launching with select exclusive podcasts available to U.S. Facebook users. The Live Audio Rooms feature has an even softer launch, available only to public figures and select Facebook Groups in the United States on iOS.
"In the coming weeks, we’ll expand the ability for more public figures and Groups to host a Live Audio Room and introduce new features for both experiences in the coming months," writes Fidji Simo, Head of Facebook App, in the announcement blog.
FB shares inched up in the first hour Monday, 13 cents to $329.79.
