As it stated in I give 3 reasons why FB is a strong buy heading into earnings. This implies revenue growth dropping to around 20% by the fourth quarter this year. I expect revenue growth to pick up after 2019 after their investments in data privacy and security are in place; however, I will assume stagnant revenue growth in my estimates. Based on my conservative estimates for 2018 earnings, FB trades 21.0 times current earnings. Given that the S&P 500 recently traded at 21.71 times earnings, FB appears materially undervalued given their higher level of projected earnings growth.
collected by :Roy Mark
Facebook Reports Earnings Trying to Claw Out of Bear Market
Facebook stock closed Monday, Oct. 29, at $142.09, down 19.5% year to date and in bear market territory at 35% below the all-time high of $218.62 set on July 25. Facebook set its 2018 low of $139.03 on Oct. 29. A "death cross" occurs when the 50-day simple moving average falls below its 200-day simple moving average, indicating that lower prices lie ahead. This is in play as the stock set its 2018 low of $139.03 on Oct. 29. The stock is above its 200-week simple moving average at $133.23, which is the "reversion to the mean" and could be tested for the first time for this stock.as informed in
collected by :Roy Mark
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