Facebook shares close higher on Monday, company to buy NLP processing startup Bloomsbury AI

According to a report by TechCrunch, Facebook Inc (FB) has agreed to acquire Bloomsbury AI, a UK startup firm which has implemented natural language processing (NLP) technology aimed to assist machines in answering questions based on information from documents.

Facebook shares closed higher for the fifth time in the past ten trading sessions on NASDAQ on Monday. It has also been the sharpest daily surge since June 20th. The stock went up 1.56% ($3.04) to $197.36, with the intraday high and the intraday low being at $197.45 and $192.22 respectively.

Shares of Facebook Inc have risen 11.84% so far in 2018 compared with a 1.99% gain for the underlying index, S&P 500 (SPX).

In 2017, Facebook’s stock surged 53.38%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

According to TechCrunch sources, Facebook is to pay between $23 million and $30 million for the UK startup firm in a cash and stock deal.

Bloomsbury AI is a firm supported by Entrepreneur First Fund, London Co-Investment Fund, UCL Technology Fund, IQ Capital, Fly VC and Seedcamp.

According to Business Review, Facebook is making the acquisition as it seeks to gain access to Bloomsbury’s “Cape”, an Application Programming Interface (API) which enables developers to add question and answer functionality to websites as well as other documents. Cape is expected to aid Facebook in combating fake news and in resolving other moderation issues.

The purchase is also expected to give Facebook an AI presence in UKs Capital City.

According to CNN Money, the 43 analysts, offering 12-month forecasts regarding Facebook Inc’s stock price, have a median target of $225.00, with a high estimate of $275.00 and a low estimate of $138.00. The median estimate represents a 14.00% upside compared to the closing price of $197.36 on July 2nd.

The same media also reported that 39 out of 45 surveyed investment analysts had rated Facebook Inc’s stock as “Buy”, while 2 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Facebook stock are presented as follows:

R1 – $197.84
R2 – $198.32
R3 (Range Resistance – Sell) – $198.80
R4 (Long Breakout) – $200.24
R5 (Breakout Target 1) – $201.92
R6 (Breakout Target 2) – $202.73

S1 – $196.88
S2 – $196.40
S3 (Range Support – Buy) – $195.92
S4 (Short Breakout) – $194.48
S5 (Breakout Target 1) – $192.80
S6 (Breakout Target 2) – $191.99

By using the traditional method of calculation, the weekly levels of importance for Facebook Inc (FB) are presented as follows:

Central Pivot Point – $196.06
R1 – $199.01
R2 – $203.70
R3 – $206.65
R4 – $209.60

S1 – $191.37
S2 – $188.42
S3 – $183.73
S4 – $179.04