Facebook investors need to be cautious till May

Facebook investors need to be cautious till May


Stock reports bring in an alert for investors, who had been in constant gaze to buy Facebook Inc. (NASDAQ: FB) shares. The current financial scenario of the company persuades them to take a break – till social giant reports its first Q earnings on 27 April 2016.

On a similar note, analysts forecast a drop in its stock unless current record highs prior taking a rebound at US$ 145 in 12 months time span.

Exclusive report from Market Watchers has claimed Facebook stock to have surged 4.2.3% over an annual period alongside an increment worth 3% for the S&P 500. Shares have been flirting with all-time highs over the last few weeks heading into the company’s F8 developer’s conference on April 12, setting a fresh record of US$ 116.14 on March 29.

Following Ross Sandler’s (analyst from Deutsche Bank) expects Facebook’s shares to plunge slightly before hiking again to mark another record in Summer/Spring 2016, the social giant experienced 1.2% decrement in its shares at US$ 114.70 during pre-market trading. Moreover, Ross looks onto to an annual-estimated ad revenue growth of 53% at US$ 5.06 billion – slightly bearish to accord. He firmly believes Messenger and WhatsApp to reach a US$ 10 billion combined revenue run rate by year 2020.

(As per ARN reports, Deutsche Bank reiterated a ‘buy’ rating and set US$ 145 price target on the stock, implying 25% benefit to Friday’s closing i.e. US$ 116.06. He also projected towards company’s strength in debut for Facebook’s new virtual reality headset, Oculus Rift)

“We think investors may have an opportunity to add to positions below current levels after the first Q results.” – Ross Sandler

As per reports, analysts do not seem pessimistic with regard to Facebook’s stock. American social giant is believed to flourish at peak to expand beyond the flagship app, giving an easy grab to investors despite of being on weaker track sometimes – it is farsighted among ‘few names with as much multi-year revenue’.

Facebook has shown itself to be a mobile advertising king that has helped it to expand within revenue far faster than expected – that had went public in year 2012. Here’s how Facebook looks in metrics of financial fortitude:

Stock of Facebook opened at 114.41 on Monday. The stock has a market capitalization of US$ 325.64 billion and a P/E ratio of 88.48. The stock has a 50 day moving average of US$ 109.19 and a 200-day moving average of US$ 103.17. It has a 52-week low of US$ 72.00 and a 52-week high of US$ 117.59.

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I am an independent trader currency and commodity with about eight years of experience. I love the financial world because it is like one big puzzle and I hope we help each other out to solve the puzzle to help us realize our dreams. I received my BBA in Accounting (With Honors) - from The University of Texas - San Antonio. Achievements: Beta Alpha Psi National Accounting Honors Fraternity member, Leadership Challenge Participant, Dean's List. I have passed the Series 63, 22, Texas Real Estate exam, and the DRI Business Continuity exam.