Do you know the recent Facebook Stock Forecast? The use of social networks has increased in the past few weeks since more people have been forced to stay at home in the midst of the current Covid-19 pandemic. In recent reports, the giants of social networks such as Facebook (FB), Twitter (TWTR), Snap (SNAP), and TikTok have reported on greater participation of users.
As the biggest player in the sector, Facebook has benefited from this situation. The company recently informed that the message in its red increased by more than 50%. However, this increase in use has not been replicated in company finances.
Facebook Stock Forecast
The main reason why Facebook’s finances could be suffering is that companies are not spending a lot of money on advertising, as they did before the virus broke out. On the contrary, many businesses are saving money to try to survive the economic uncertainty.
As a result, FB’s actions have not been punished. In the course of the year, the price of its shares has fallen by more than 16%, which supposes a lower yield than the S&P 500 (US 500) and Nasdaq-100 (US 100) promises, which are based around 14% and 7% respectively
Why Inverters are Still Eligible for Facebook in 2021
Any form of Facebook is one of the most admired companies in the investment community. According to data recommended by Barons, Kiplinger, and Business Insider, they are one of the main holding companies among many of the cover funds.
There are several reasons why any inverters simply love Facebook. First, the company is due to one of the most powerful online messaging services in the world: WhatsApp, which is the preferred application for many people, Facebook, and the largest social networking platform in the world, with more than 2,500 million users. Instagram, for its part, is the largest social media platform based on images. Because it is the owner of these products, the company has an impenetrable field.
Secondly, Facebook is the second largest provider of digital ads. Only in 2019, the company won over $ 70,000 million. This suits you according to Google (GOOGL), which won over $ 161 billion. The most important thing is that the business is growing now at a faster rate than Google. Facebook has an increase in income of more than 20% compared to 15% of its rival
Panorama of the actions of the FB: Will it rise again after the pandemic?
According to Warren Buffett, the best time to buy action is when people have fear. This is because, in times of panic, one could have the exclusive opportunity to approach high-quality companies, a relatively low price. This is what happened in 2018 when everyone thought that Facebook would not survive the storm.
In order to make a rational prediction of the price of Facebook actions, it is important to look at the overall climate picture, rather than pay attention to the turbulences that could be only temporary.
Like all companies, Facebook is expected to be a little difficult, but a lot of business has come to a pause in their advertising campaigns. So, as history has it, the economy always recovers after a crisis. Once the pandemic ends and uncertainty fades, companies will have to advertise their products and services again to compensate for the damage. With our lives revolving around the Internet, Facebook will be the first place for them to promote their brands.
It is also important to observe the valuation. Facebook is currently valued at $ 500,000 million. The company has a price/benefit ratio (PE) of 21, less than that of Google and Twitter with its PE of 24 and 54. It also has an EV / EBITDA value of 15.33 compared to 15 and 25 of Google and Twitter.
This means that Facebook, which is growing faster, is now undervalued compared to its main rival
Technical analysis for FB actions
So could we say that Facebook’s actions will go up? In order to answer this question, in addition to looking at the fundamental analysis, it is also important to look at the information in the graphs to determine a forecast in the short term. Seeing the daily chart of the current, we note that the actions of FB have all the efforts to reduce the losses that have suffered in March.
According to the analysis of the price of Facebook’s actions, it has managed to overcome the 38.2% Fibonacci setback. This means that the price could go up and prove the 50% Fibonacci that would be $ 180.
Facebook Buy or Sell
Now that we manage all this information, can we decide that Facebook actions are a good investment? Like any other asset, there is no definitive answer to this question. You can depend on how long you want to invest in the company. If your objective is a benefit in the short term, there is a risk that the actions will continue to confine the cause of the coronavirus for a longer period. There is also the possibility that it will increase volatility, especially as the season of greed approaches.
However, if your goal is to invest and keep it off the ground, it may make sense to invest in this company. It has a solid balance, an impenetrable field, the potential to increase marbles, its generation of income, and a huge growth opportunity have been proven as the world economy shrank. So it’s very likely that Facebook’s actions in 5 years are much better than today.
Consider that analysts expect company earnings to reach $ 165,000 million in 2025. If it does, it means that your earnings will be alongside Google today. This would give a valuation of more than $ 700,000 million. That’s it on this topic Facebook Stock Forecast.
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