Facebook wants to cover the planet – with its own drones.
As reported by Tech Crunch and confirmed by CNBC's Brian Sullivan, the world's largest social networking company is said to be looking to buy Titan Aerospace for $60 million. Titan makes high-atmospheric solar-powered drones that can stay up for as long as five years without ever coming down.
Facebook's plan is simple and not scary or menacing at all: it wants to send drones around the globe to provide Internet to hard-to-reach places. The company's first target will be 11,000 drones over Africa.
According to CNBC contributor Gina Sanchez, founder of Chantico Global, believes that even though this is a relatively small deal for Facebook, it matters in the context of its recent $16 billion acquisition of WhatsApp.
"The majority of the base of users of WhatsApp are international and in emerging markets," says Sanchez. "If they can make Internet more readily accessible, that feeds right in not only to the Facebook platform generally, but specifically to that monstrous deal that they just made."
Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, says the charts for Facebook were positive even before word of this possible deal got out.
"The charts are quite bullish here for Facebook," says Ross. "You still want to be a strong buyer of the stock."
(See: CNBC's Social Media coverage)
Ross sees an additional $7 or $8 on the upside for Facebook's stock, which was at $68.77 per share in the middle of Tuesday's trading session. Ross believes Facebook's chart has exhibited two out of three bullish gaps in recent months: a breakaway gap and a runaway gap. The third gap, an exhaustion gap, has yet to appear, he says, but will provide a decent selling opportunity later on.
"Typically with an exhaustion gap, you get an explosive, climactic move to the upside," says Ross. "Often times, that's where we see the best gains in the entire trend. You want to be there for that third gap and you want to a seller into that exhaustive gap, not into the runaway gap here. Once again, make the gaps your friend. Buy Facebook. I think the stock goes higher."
To see the full discussion on Facebook with Sanchez on the fundamentals and Ross on the technicals, watch the video above.