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.
Full Answer
Should you buy Facebook stock today?
But there are other ways of looking at the price tag: Facebook stock currently trades for 35 times free cash flow, and just 30 times expected earnings over the next year. That's a very reasonable number for a company with the above nine traits. And that's why I think you, too, should consider buying -- and holding -- Facebook shares today.
Is Facebook the biggest risk to the stock?
Facebook is entering its second generation of users—and younger Americans use Snapchat and Twitter as frequently as they use Facebook. Google and Apple, two players with longer track records, are challenging Facebook in the app install market, too. Of course, the biggest risk to any stock is probably systematic, not specific.
Will you still be holding Facebook stock when you retire?
Currently, Facebook occupies 15% of our real-life portfolio, and we have no intention of selling the stock...ever. While things could change in the future, here are 10 reasons why I'm so confident we'll still be holding shares when we retire.
Will Facebook stock get to $130?
The tech company was then trading just above $90, meaning Munster thought the stock could get as high as $130. He was right—eventually. FB reached $130 in January 2017 and then kept climbing, topping $200 in July 2018.
Is Facebook stock a good investment?
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.
What would be a good reason to offer stock of Facebook to the public?
The cost of having advertisements on Facebook is going up significantly, which means that the demand is high. If you're a company, and you want to be in front of your consumers, the best place to do that is on Facebook, and everyone knows that.
Why did Facebook stock increase?
Shares of Facebook parent Meta (FB) soared in early trading Thursday on the back of its Q1 earnings report. Shares of the social media giant were up more than 14% despite a miss on revenue expectations, as investors and analysts digested the company's plans to scale back spending.
What is the prediction for Facebook stock?
Meta Platforms Inc (NASDAQ:FB) The 48 analysts offering 12-month price forecasts for Meta Platforms Inc have a median target of 287.50, with a high estimate of 553.00 and a low estimate of 185.00. The median estimate represents a +50.71% increase from the last price of 190.76.
What will FB be worth in 10 years?
According to the latest long-term forecast, Facebook price will hit $200 by the middle of 2023 and then $250 by the middle of 2024. Facebook will rise to $300 within the year of 2025, $400 in 2027 and $500 in 2030.
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Why did FB stock crash?
Topline. Shares of Facebook parent Meta fell over 25% on Thursday—erasing over $230 billion in market value for its worst trading session in history—after the company's dismal quarterly earnings report showed declining users and surging expenses related to the company's metaverse project.
Why did Facebook lose so much?
Executives blamed the disappointing results on several factors, including Apple's privacy changes to iOS that made targeting ads to users more difficult and “supply chain disruptions” that are causing advertisers to spend less. The problems are unlikely to be resolved anytime soon.
What caused Facebook stock drop?
Shares of the company formerly known as Facebook saw a historic plunge Thursday after the social media giant reported a rare profit decline due to a sharp rise in expenses, shaky ad revenue growth, competition from TikTok and fewer daily U.S. users on its flagship platform.
What will Facebook stock be worth in 2025?
The stock of Meta Platforms, Inc (FB) will continue to increase in value, reaching $470 in 2025, $580 in 2027, and $765 in 2030. We will examine each year from the current year 2022 through 2030 in our Meta (FB) stock price projection.
What will FB be worth in 5 years?
Based on our forecasts, a long-term increase is expected, the "FB" stock price prognosis for 2027-05-21 is 403.151 USD. With a 5-year investment, the revenue is expected to be around +106.62%. Your current $100 investment may be up to $206.62 in 2027.
Will FB stock price go up?
The analyst expects the average Meta (FB) stock price to be $210.50 in 2022, climbing to $211.27 in 2023, but falling to $206.45 in 2024.
Competition? What Competition?
Facebook has one of the strongest competitive advantages possible: the network effect. With each person who joins Facebook, those who aren't on the...
Don't Forget About Whatsapp Or Instagram
The advertising spigot has only recently been turned on for Instagram, and we have yet to see how Facebook really plans on monetizing WhatsApp. But...
The Mission Is Bigger Than Facebook.Com...Or Instagram, Or Whatsapp
Companies don't become truly revolutionary unless they have a vision that goes far, far beyond just turning a profit. Officially, "Facebook's missi...
and That Mission Leads to Optionality
Optionality is a term used to explain how a company can explore other areas where it can help the world (and create shareholder value). In short, i...
It Has The Cash to Pursue Such Things
As of June 2017, Facebook had almost $35 billion in cash and equivalents on hand, versus absolutely no long-term debt. Facebook can use that money...
Zuckerberg's Just Getting Started
There aren't many world-beating companies you can invest in that are run by a 33-year-old genius. As long as he doesn't go the Bill Gates route and...
It's Actually Not That Expensive
You could be forgiven for thinking you've missed the train on Facebook stock. It is, after all, up 850% from its 2012 lows. And if you look at most...
Will FB Stock Split in 2017?
Many investors think Facebook Inc (NASDAQ:FB) is unaffordable at $137.00 per share. The social media stock seems out of reach. A FB stock split in...
Facebook Stock Split History
The upcoming stock split would be Facebook’s first as a public company. In essentials, the stock has been unchanged since its initial public offeri...
Why Facebook Will Split Its Stock
Facebook wants to introduce a new class of shares that differ from the ones shareholders are giving up. Most investors will hold Class C shares of...
How Stock Split Will Affect FB Stock Price
Now let’s get down to the important stuff.How is this going to affect shareholders? Does it impact our FB stock prediction for 2017? Is Facebook st...
What are the advantages of Facebook?
Facebook has one of the strongest competitive advantages possible: the network effect. With each person who joins Facebook, those who aren't on the network have the motivation to sign up. Inherently, that makes sense: who would want to go on the site if none of their friends were there?
How much is Facebook stock up from 2012?
You could be forgiven for thinking you've missed the train on Facebook stock. It is, after all, up 850% from its 2012 lows. And if you look at most sites, they'll tell you that it trades for 43 times earnings.
What is Facebook's mission?
Officially, "Facebook's mission is to bring the world closer together."
Is Brian Stoffel a Fool?
Brian Stoffel has been a Fool since 2008, and a financial journalist for The Motley Fool since 2010. He tends to follow the investment strategies of Fool co-founder David Gardner, looking for the most innovative companies driving positive change for the future. He also mixes in risk-management strategies he's learned from Nassim Nicholas Taleb. Follow @Brian_Stoffel_
What would happen to FB stock if he left a vacuum?
FB stock could plummet if he leaves a power vacuum. (Fair point.)
What class of shares does Facebook have?
Facebook wants to introduce a new class of shares that differ from the ones shareholders are giving up. Most investors will hold Class C shares of FB stock after the split.
What does it mean to trade your own fortunes?
We are trading our own fortunes. This means we take risk more seriously. Every new trade is an opportunity to learn something new about investing. What works, what doesn’t. We need the freedom and flexibility to shift our holdings with ease.
Is it better to own Facebook before or after the stock split?
That said, it’s probably better to own Facebook stock before the stock split than after.
Is a stock split a one time adrenaline shot?
It’s important to remember that stock splits are a one-time adrenaline shot. They are not a steady tailwind, but rather a momentary gust of wind. I would personally focus on the million other reasons to be bullish on FB stock.
Can you double your money on the Nasdaq?
Over the last five years, the data shows that you could have doubled your money with a bet on the Nasdaq 100 Index. An exchange-traded fund that tracks the index would have scored you triple-digit gains. But Facebook far outstripped those returns. It more than tripled.
Is Facebook a public company?
The upcoming stock split would be Facebook’s first as a public company. In essentials, the stock has been unchanged since its initial public offering in 2012. Its pre-IPO record is quite different.
How much of Facebook's revenue is from advertising?
According to the company's financial statements in 2015, Facebook (now Meta) received approximately 90% of its revenue from advertising. That figure had grown to 98% by 2017, according to Statista.com. To put this in perspective, Apple, Inc. has been trying desperately to introduce revenue streams outside of the iPhone, and Facebook is far more reliant on advertising than Apple is with the iPhone.
How long did Facebook last in 2018?
It was up to 68 minutes in 2018, according to Statista.com. It is an impressive figure, but there is a point of saturation. Eventually, Facebook will stop adding users and users will stop increasing the time they spend on the sites.
How much did Meta spend on Instagram?
Meta has shown a propensity to mimic or buy out competitors. In 2012, the company spent $1 billion on Instagram. It made a far less lucrative purchase in 2014, buying the little-known WhatsApp for $19 billion. Those buys made strategic sense. Those apps could have drawn users away from Facebook.
How many people use Facebook in 2018?
That had to happen sooner or later. In 2018, Facebook had about 2.3 billion users worldwide. That’s almost a third of the world’s population, and more than half of those who have internet access.
How much money did Facebook spend on Oculus?
Seemingly every tech giant has been throwing serious money at virtual reality. Facebook's purchase of Oculus went for a reported $2 billion may turn out to be a winner. Or not. Oculus tops a list of the most promising virtual reality initiatives of 2017, according to Datamation.
Is Facebook still in its first generation?
Facebook is still in its first generation of users. Google and Apple, two players with longer track records, are challenging Facebook in the app install market. Young Americans use Snapchat and Twitter as frequently as they use Facebook.
Can Facebook buy Snapchat?
Facebook cannot buy all of them, and one of them might catch fire. This is illustrated ed by Snapchat, a company Facebook tried and failed to buy for $3 billion. As of 2018, Snapchat had 188 million users, but that was down a bit from its peak of 191 million and its stock got hit badly for the loss.
What is the bear case for Facebook?
Facebook does have market power but perhaps not to the extent one might at first think.
Should I invest in Facebook stock?
Facebook has historically outperformed all the major US indices. This includes the S&P 500, the NASDAQ, and the Dow Jones Industrial Average (DJIA).
What happened to Facebook in 2018?
The company was caught up in a scandal that broke in 2018 when a company called Cambridge Analytica harvested user data from millions of users without their consent in 2014-15 that was used to target voters in several 2016 elections. The Federal Trade Commission fined Facebook $5 billion for failing to protect its user data.
How many people use Facebook in 2021?
The trio of Facebook, Instagram, and WhatsApp have driven the company's user growth, from 2.4 billion monthly active users in the second quarter of 2019 to 2.9 billion in Q2 2021, a 20% increase. In other words, more than one-third of the global population now uses a Facebook-owned social media platform at least once a month.
What is Mark Zuckerberg's social media company?
Mark Zuckerberg and his social media company Facebook ( NASDAQ:FB) have come a long way from the origin story depicted in The Social Network, a fictionalized account of actual events that came out 11 years ago.
What is the biggest problem with Facebook?
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.
Is Facebook a dividend company?
Its business is very profitable, converting 29% of its Q2 2021 revenue into free cash flow (FCF), amounting to $8.5 billion FCF on $29 billion in revenue. Facebook doesn't pay a dividend; it reinvests back into the business to drive growth while using excess cash to buy back shares to grow its per-share earnings.
Is Facebook a conglomerate?
Evolving from a simple social media website, Facebook is now a conglomerate with a tight hold on billions of consumers' eyeballs. It's also gotten into its share of hot water over the years with regulators over its thirst for consumer data, shrouding the company in controversy.
Does Facebook own Oculus?
Facebook owns Oculus, a company that makes augmented/virtual reality headsets. It recently put together a team dedicated to the metaverse and announced its first iteration of smart glasses via a partnership with Ray-Ban. It seems clear that Facebook is trying to expand the limits of its reach beyond the phones we hold in our hands.
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.
When is the Golden Star stock going to be in 2021?
Golden Star 12 Months. The stock had a Golden Star Signal on Tuesday, February 09, 2021 in the long-term chart. Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination.
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.
Is Meta Platforms, Inc. stock A Buy?
Meta Platforms, Inc. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. We have upgraded our analysis conclusion for this stock since the last evaluation from a Strong Sell to a Sell candidate.
Dependence on Ad Revenue
Virtual Reality Unrealized
- Seemingly every tech giant has been throwing serious money at virtual reality. Meta's purchase of Oculus, which went for a reported $2 billion, may turn out to be a winner. Or not. Oculus tops a list of the most promising virtual reality initiatives of 2017, according to Datamation. The following two are Google and Microsoft. As of late 2018, all are making progress in developing games an…
Social Media Competition
- Meta has shown a propensity to mimic or buy out competitors. In 2012, the company spent $1 billion on Instagram. It made a far less lucrative purchase in 2014, buying the little-known WhatsApp for $19 billion. Those buys made strategic sense. Those apps could have drawn users away from Facebook. In the tech sector, however, rival apps come thick and fast. Meta cannot b…
Market Risks
- Of course, the biggest risk to any stock is probably systematic, not specific. There is not much any company could have done in the buildup to the 2007-2008 stock market crash, especially one tied to housing or finance. The Nasdaqlost more than 75% of its value during the dot-com crisis, and it is difficult to predict if or when another free fall is coming.
Regulatory Risk
- There is also the chance of regulatory risk. Facebook uses what is still a relatively new technology, and social media is a relatively unregulated market. Since American industries tend to become more regulatedover time, it seems likely Uncle Sam will increasingly have his fingerprints on social media companies. Poll any investor and ask if regulations are good or bad and the likeliest resp…
The Bottom Line
- If the economy suffers or if funding dries up for new startup technologies, the ceiling for FB will almost certainly take a hit. Meta has mimicked the Google model of aggressive integration, but that strategy depends on an active technology sectorwith new ways to reach or add value to consumers. Meta has solid fundamentals and an enviable position in the social media sub-secto…