Maybe it’s because they’re just not as popular as they used to be. Or maybe it’s the name changes. Whatever it is, the reason the NASDAQ NDAQ -0.1% -100 remains well below its November, 2021 price peak is the failure of major components Facebook (now Meta), Apple, Amazon, Netflix and Google (now Alphabet) to rally.
Full Answer
Why is Facebook stock cheaper than Google?
While Facebook’s higher revenue growth over recent years and its higher multiple imply higher potential earnings growth in the future, we believe that Google is the cheaper stock at present. A primary driver to our belief is a higher quality revenue mix for Google, especially Google's Cloud business.
Which stock should you buy first - Google or Facebook?
Which Stock Should You Go For: Google Or Facebook? Facebook’s stock (NASDAQ NDAQ -0.2%: FB) is up by about 16% since early 2018 - well below the 28% gain for Google GOOGL +4.2% ’s parent Alphabet’s stock (NASDAQ: GOOGL) over the same period.
Is Facebook’s stock really up 16% since early 2018?
Facebook’s stock (NASDAQ NDAQ -0.2%: FB) is up by about 16% since early 2018 - well below the 28% gain for Google GOOGL +4.2% ’s parent Alphabet’s stock (NASDAQ: GOOGL) over the same period.
How does Facebook’s revenues compare to Google?
Interestingly, though, Facebook’s Revenues have grown by 74% between 2017 and 2019, which is nearly 1.6x the growth in Google’s revenues of roughly 46% in the same period. Also, the P/E multiple for both companies has been nearly flat since 2016, with Google’s multiple at 28.6x being lower than Facebook’s at 34.8x.
Is Facebook undervalued now?
Meta Platforms (NASDAQ:FB) announced in its Q1 results on April 27 that its daily average users actually increased from the prior quarter. They rose 1.6% from 1.92 billion daily active users (DAU) to 1.96 billion DAUs.
Why is FB stock down?
FB Stock Sinks on Zuckerberg Lawsuit, Snapchat Earnings In 2019, the Federal Trade Commission fined the company $5 billion for the data leak. The social media company has also faced international consequences for its role in the privacy breach.
Which is a better investment Facebook or Google?
Even though Facebook has higher margins compared to Google, Google's operating and net margin growth of 796 basis points and 745 basis points easily routs out Facebook's operating margin of 164 basis points. Facebook's net margin even went down by 52 basis points YoY.
Why is Google share price so high?
For years, Google has been growing at a fast clip. Revenues and profits continue to rise at double digit rates. If past history is any predictor of the future, Google remains a good investment. The big risk to the company is regulatory intervention now.
Is Facebook a good stock for 2021?
What the Analysts Say. Of 44 analysts covering Facebook in February, 17 rate the stock a “strong buy” and 24 rate it a “buy,” according to Yahoo Finance. That's down from January 2021, when 18 rated it a “strong buy” and 30 rated it a “buy,” but analysts see Facebook's current troubles as temporary.
Is Facebook still a good investment?
(NASDAQ: FB) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds. FB was in 266 hedge fund portfolios at the end of the first half of 2021, compared to 257 funds in the previous quarter. Facebook, Inc. (NASDAQ: FB) delivered a -12.46% return in the past 3 months.
Is Google going to split?
When Was Google's Stock Split Approved? At the 2022 Annual Shareholder's Meeting on June 1st, GOOGL shareholders approved a 20-for-1 stock split. This means that for every share, shareholders will receive 20 shares at the end of the business day on July 15th.
Has FB ever had a stock split?
FB (FB) has 0 splits in our FB stock split history database. Looking at the FB stock split history from start to finish, an original position size of 1000 shares would have turned into 1000 today.
Is Google overvalued?
The bottom line is that Google stock, while costly, is not especially overvalued. Its price might not accurately reflect current market conditions, but it is indicative of expectations for the company's future growth in revenue and earnings.
Is Amazon going to split?
Upcoming Stock Splits Amazon is one of several big-name tech and consumer companies planning to split its shares. Alphabet (GOOGL)/(GOOG), Google's parent company, disclosed plans for a 20-1 stock split for both its Class A and C shares in February, which will take effect on July 15.
Why is Apple share price so low?
Apple has fallen during a bad week for equity markets, which are selling off stocks in nearly every industry on fears of Fed rate hikes, weakening consumer confidence, rising inflation and global supply chain challenges.
How much would I have if I invested $1000 in Google?
Buying $1000 In GOOGL: If an investor had bought $1000 of GOOGL stock 5 years ago, it would be worth $2,973.07 today based on a price of $2543.93 for GOOGL at the time of writing.
Facebook regularly outgrows its chief rival, but the gap was particularly stark in the second quarter
Last Thursday, Facebook ( FB -0.27% ) , Apple, and Amazon all delivered blowout second-quarter earnings reports, speeding past estimates. Alphabet ( GOOG -1.23% ) ( GOOGL -1.29% ) was the odd tech titan out, however, sliding 3% the next day as its peers soared.
NASDAQ: GOOGL
Facebook is smaller than Google, but is fast gaining on its top rival, and nearly passed Alphabet in operating income in the most recent quarter -- the social media titan posted an operating profit of $6 billion, compared to $6.4 billion in operating profit at Alphabet.
1. Google can't escape the macro economy
Google saw its revenue steadily recover over the course of the quarter, but the company was impacted by the loss of advertisers in areas like travel. Online travel agencies like Booking Holdings and Expedia normally spend billions on Google ads ever year, but essentially shut down their marketing spending as travel demand collapsed.
2. "Other bets" is turning into a money pit
Alphabet again posted an operating loss of more than $1 billion from its "other bets" division, the group of non-Google businesses like Waymo, the self-driving unit, that the company refers to as moonshots.
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Which tech giant will bring higher returns?
Amazon ( AMZN -1.33% ) and Facebook ( FB -0.75% ) have grown to dominate different parts of the technology industry. Amazon has emerged as the leader in e-commerce and cloud computing, while Facebook has taken a commanding lead in social media.
The state of Amazon
Most think of Amazon as an e-commerce company. Although that is an accurate assessment in many respects, it derives most of its profit from its cloud-computing segment, Amazon Web Services (AWS). Also, its move into online ads will likely evolve into a significant revenue segment over time.
Where Facebook stands
Facebook is an online ad giant in its own right. Its dominance of social media has allowed the company to compete with Amazon and Alphabet 's Google in the lucrative online ad space.
Amazon or Facebook?
Both companies are proven successes in high-growth industries. This means investors will likely profit from buying either stock. Still, despite Facebook's lower forward P/E ratio, I have to recommend Amazon in this case.
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1. Are the tech giants monopolies?
They’re powerful, for sure. Google and Facebook Inc. together control almost 60 percent of digital ad revenue in the U.S. and 64 percent of mobile ad revenue, according to eMarketer. Apple Inc. has about 45 percent of the U.S. smartphone market. About 47 percent of all U.S. e-commerce sales go through Amazon.com Inc.
2. How often does the U.S. go after monopolies?
The Microsoft lawsuit was the last major monopolization case brought by the U.S. The ensuing 20-year dry spell is often cited by those who argue enforcement has been too timid. President Barack Obama’s administration vowed to get tough on dominant companies in 2009, but it didn’t follow through. The number of monopoly cases brought by the U.S.
3. Is antitrust thinking outdated?
Some lawyers and economists think it’s time to move past conventional antitrust enforcement to consider harmful effects from increased concentration such as lower private investment, weak productivity growth, rising inequality and declining business dynamism, or the rate at which firms enter and exit markets.
Facebook is shrouded in controversy, but there are several reasons to invest in Mark Zuckerberg's empire
Justin loves covering stocks across all industries, but his heart is in high-growth technology. He's been a student of the market for more than a decade. Stocks are his second love to his wife and kids, which is how he spends his free time.
Buy reason No. 1: Facebook is still growing (and evolving)
Facebook has become much more than the social network the company is named after. CEO and founder Zuckerberg has been somewhat sneaky with acquisitions over the years, acquiring Instagram for $1 billion in cash and stock in 2012 and the messenger app WhatsApp for $16 billion in stock and cash in 2014.
Buy reason No. 2: Facebook makes a ton of money
Facebook's ability to make money from its users is impressive. In its most recent quarter, Q2 2021, the company generated $10.12 in revenue per user, a 43% increase from just a year prior.
Buy reason No. 3: Facebook's stock price is reasonable
Its market cap of $1.02 trillion makes it hard to call Facebook's stock "cheap," but its valuation could be reasonable. Facebook's expected full 2021 earnings per share of $10.09 puts the stock at a price-to-earnings (P/E) ratio of 35.
A reason to sell: Government threats are unpredictable
Facebook's biggest problem is that it draws negative attention from regulators and politicians around the world for its invasive data policies, the occasional spread of misinformation on its platforms, and its role in how information spreads among the public.
Does the good outweigh the bad for Facebook stock?
Despite the ongoing risks of government interference, Facebook is a great company that grows and generates a ton of cash for both the business and its investors. The metaverse addressable market could be worth as much as $280 billion by 2025, and Facebook is aggressively positioning itself to get its share.
