Key Points
- Facebook went from Mark Zuckerberg's dorm room to a trillion-dollar social media conglomerate.
- The company is highly profitable and is still growing at a substantial rate.
- Regulators and politicians don't seem to like Facebook much, but the quality of its platforms is hard to ignore.
Full Answer
How can I invest in Facebook stock?
The 10-K can help you understand a lot about the company:
- how it makes money and how much
- its assets and liabilities
- its profitability trend over time
- the competitive landscape
- the various risks faced by the business
- the management team and how they’re incentivized
Should you buy Facebook (FB) stock?
The trading price of Facebook ... the stock as represented by 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock should be considered as either strong buy or strong sell respectively. The number of analysts that have assigned FB a ...
Why Facebook is a screaming buy?
This impressive growth shows why Galaxy Digital is one of the top TSX stocks to buy today. Another high-potential segment Galaxy has is cryptocurrency trading. The company has a market-leading trading desk offering spot and derivative trading, lending ...
Why did Facebook do a stock split?
Why does Facebook want to split its stock? The only semi-legitimate reason for splitting a stock is to lower the stock price to make the shares more accessible to individual investors. This is the reason Apple invoked when it announced its most recent split, which it completed in June 2014.
Is Facebook a good stock to buy?
FB is trading near all-time lows at 14.4X forward 12-month earnings. This marks 38% value compared to its own five-year median and a 45% discount to its industry. Alongside its valuation, Meta boasts a stellar balance sheet, with no long-term debt and $48 billion in cash and equivalents.
Will FB stock go up?
Algorithm-based forecasting services gave a bullish long-term Meta platforms stock forecast, as of 8 June. Wallet Investor expected the FB future stock price to end up 2022 at $216.180. Looking forward, it anticipated the stock could move to $255.966 by the end of 2023 and hit $335.972 by the end of 2025.
Is Facebook overvalued?
Tesla, Facebook, Netflix, and Amazon stocks are all wildly overvalued, value investor says.
Is FB undervalued?
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.
What will Facebook be worth in 5 years?
Facebook Stock Forecast 2024-2028 These five years would bring an increase: Facebook price would move from $321 to $636, which is up 98%. Facebook will start 2024 at $321, then soar to $333 within the first six months of the year and finish 2024 at $360. That means +86% from today.
Is Facebook a buy sell or hold?
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. Their average price target is $353.91 — over 49% above the current price.
Does Facebook pay a dividend?
(FB)–formerly known as Facebook–does not offer a dividend today, we believe it could initiate a dividend in time.
How can I invest on Facebook with $50?
If you'd like to invest $50 in Facebook, you'll need to use a fractional shares trading app to make your purchase. Some of the best fractional shares apps to buy the stock include: M1 Finance. Robinhood.
Will Facebook stock go up tomorrow?
Tomorrow's movement Prediction of Facebook, Inc. FB as on 08 Jun 2022 appears strongly Bullish. This stock started moving upwards as soon as it opened....Munafa value: 75 as on 08 Wed Jun 2022.Upside target205.31Upside target197.62Downside target194.56Downside target193.36Downside target192.585 more rows
What is the fair value of Facebook stock?
As of today (2022-06-08), Meta Platforms's share price is $196.64. Meta Platforms's Peter Lynch fair value is $330.50. Therefore, Meta Platforms's Price to Peter Lynch Fair Value Ratio for today is 0.59.
Does FB have a moat?
Despite early critics of Facebook's competitive advantage sustainability, its moat has become clear. The term "moat" is coined by Warren Buffett, referring to sustainable competitive advantage. Facebook's moat is none other than its network effect.
Does Facebook have a moat?
Facebook: It Still Has a Sizeable Moat TikTok and Snap (SNAP) have been hitting a spot with younger audiences. Indeed, it'd be nice if Facebook were appealing to such a crowd again. Regardless, older social-media users still flock to Facebook, and they will keep the platform from free-falling into the abyss.
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.
Why is Facebook important?
These numbers are all-important to Facebook's lifeblood: advertisers. Facebook relies on advertising for revenue, and to convince advertisers to spend money, Facebook must illustrate that it can continue to bring in new users and keep them on its platforms.
When did Facebook buy Instagram?
Even more importantly, Facebook acquired Instagram for $1 billion in August 2012, which at the time had a little more than 100 million registered users. Today the platform has more than 1 billion and counting.
How many social media platforms does Facebook own?
Among the six most popular social media platforms in the world, Facebook owns three: WhatsApp, Instagram and, of course, Facebook itself. With the pandemic continuing to rage across the globe, people are turning to Facebook to stay connected with their loved ones.
Why is Zuckerberg's comment important?
That's an important comment because it could ultimately be meant to drum up regulator interest in antitrust concerns surrounding Apple, which Facebook is also dealing with.
Who singled out Apple in Facebook earnings call?
CEO Mark Zuckerberg singled out Apple in Facebook's most recent earnings call. By John Divine.
Will Facebook give a like?
Users will probably still give Facebook a "like" – which is exactly why investors should as well, at least in the short term. Facebook is keeping much of the world connected during a global pandemic. Whether advertisers like it or not, the company's popularity will keep them coming back and lining Facebook's pockets.
Is Apple a competitor of Facebook?
One of the more meaningful developments in the most recent earnings call was the declaration from Zuckerberg, who is Facebook's CEO, that Apple ( AAPL) was increasingly operating as one of the company's biggest competitors. Apple, which just announced earnings, now has an active install base on its iPhones of more than 1 billion devices.
The social media company remains a polarizing investment
Leo is a tech and consumer goods specialist who has covered the crossroads of Wall Street and Silicon Valley since 2012. His wheelhouse includes cloud, IoT, analytics, telecom, and gaming related businesses. Follow him on Twitter for more updates!
Key Points
Apple’s iOS update is throttling the growth of Facebook’s ad business.
Stable growth amid platform challenges
Last quarter, Facebook warned that Apple 's ( NASDAQ:AAPL) iOS update, which allowed users to opt out of data tracking features across all apps, could throttle its ad revenue growth in the second half of the year. But despite those challenges, Facebook still grew its ad revenue 33% year-over-year on top of the segment's 22% growth a year earlier.
But Facebook continues to connect people
Facebook's near-term advertising growth could be bumpy, but it's still continuously gaining more users.
An emphasis on the metaverse and bigger buybacks
Instead of focusing too heavily on the ad business' temporary headwinds and controversies, Facebook emphasized the expansion of its metaverse business with new VR headsets, experiences, and upcoming AR devices.
Is Facebook's stock worth buying?
Facebook is growing a lot slower than Snap, and it faces many of the same headwinds. However, Facebook's stock didn't crash after its earnings report because it was already trading at much lower valuations than Snap.
How much is Facebook stock worth in 2021?
The Facebook stock price gained 1.38% on the last trading day (Friday, 9th Jul 2021), rising from $345.65 to $350.42. During the day the stock fluctuated 1.58% from a day low at $345.27 to a day high of $350.71. The price has fallen in 6 of the last 10 days, but is still up by 2.11% over the past 2 weeks. Volume fell on the last day by -1 million shares and in total, 13 million shares were bought and sold for approximately $4.44 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
Is Facebook stock a sell signal?
The Facebook stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately $350.88. On a fall, the stock will find some support from the long-term average at approximately $336.75. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Monday, June 28, 2021, and so far it has fallen -1.47%. Further fall is indicated until a new bottom pivot has been found. The stock had a Golden Star Signal* on Tuesday, February 09, 2021 in the medium-term chart.#N#* Golden Star Signal* is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Why have you dismissed our articles about hedge fund stocks?
You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs.
What is Facebook 2021?
Facebook, Inc. is a Menlo Park, California-based social networking service company that currently has a $936.4 billion market capitalization.
What is Facebook Inc?
Facebook Inc. is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video sharing app Instagram and WhatsApp messaging app owing to acquisitions. Along with in-house developed Messenger, these apps now form Facebook’s family of products used by almost 3.30 billion people on a monthly basis as of Dec 31, 2020.#N#Facebook uses metrics like daily active users (DAUs) and monthly active users (MAUs) to measure its user base. As of Dec 31, 2020, DAUs and MAUs were 1.84 billion and 2.80 ...
How much is Facebook worth in 2020?
Headquartered in Menlo Park, CA, Facebook generated revenues worth $85.97 billion in 2020.
NASDAQ: FB
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Is Facebook parent Meta Platforms' falling share price a buying opportunity?
Shares of Meta Platforms ( FB 1.39% ) have tumbled in recent months. Since hitting a 52-week high of $384.33 in September, the tech stock has tumbled more than 19%.
Strong fundamentals
To capture just how staggering Facebook's momentum is, consider some key metrics from the company's third-quarter update.
An attractive valuation
With such strong fundamentals, it may be difficult to believe that the tech stock trades at just 22 times earnings today. This is even more surprising when you consider that the current consensus analyst estimate for Meta's bottom line is for earnings per share to increase at an average annualized rate of 21% over the next five years.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
What is the impact of FB's current business model?
Leadership in Digital Ad Sales: FB’s current business model has been affected by the various scandals and privacy issues that erupted in 2018, including the Cambridge Analytica scandal, public backlash related to questionable data usage, as well as fake news and the following uncertainty over technology sector’s regulatory environment.
What are Facebook users?
Facebook users are not only individuals, but also institutions, businesses of all sizes and organizations, including workplaces, community centers, schools and even places of worship .
Is Facebook Watch a competitor to YouTube?
In 2017, FB launched its video platform, Facebook Watch, an ambitious company priority, as a rival to YouTube. The company is now offering publishers and other video makers a means to monetize their videos.
Is Facebook a debt?
Because Facebook holds no debt , its strong cash position also enables its executive management to swiftly move the company forward into growth opportunities, both organically and through acquisitions. In 2017, FB launched its video platform, Facebook Watch, an ambitious company priority, as a rival to YouTube.
Is Facebook stock up in 2019?
Since the record Christmas Eve decline in the broader markets, Facebook (NASDAQ: FB) stock has staged an impressive comeback and year to date the stock is up almost 30%. When FB reported quarterly results on Jan. 30, it beat the consensus numbers and the stock soared.
Is Facebook Watch monetized?
Many marketers regard content offered on platforms such as Facebook Watch as a powerful means to engage with consumers, provide value, and generate sales leads. FB’s ever-popular offering Instagram is not yet fully monetized and thus has considerable room for growth.
