NASDAQ:FB ValuEngine Downgrades Facebook To SELL
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April 11, 2018

For today's bulletin, we take a look at Facebook $FB. We also provide a link to download a FREE STOCK REPORT on the company.

NASDAQ:FB

VALUATION WATCH: Overvalued stocks now make up 46.87% of our stocks assigned a valuation and 16.69% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued.

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ValuEngine Downgrades Facebook To SELL

Facebook Inc. (FB) operates a social networking website worldwide. The Company's products for users are free of charge and available on the Web, mobile Web, and mobile platforms, such as Android and iOS. Its website enables users to connect, share, discover, and communicate with each other. The Facebook Platform is a set of tools and application programming interfaces that developers can use to build social apps on Facebook or to integrate their Websites with Facebook. It offers products that enable advertisers and marketers to engage with its users. Facebook Inc. is headquartered in Menlo Park, California.

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It's been a rough few weeks for the social media giant. As we discussed just a few weeks ago, the company has been rocked by a series of scandals related to data breaches and user privacy. These scandals include the use of user data from more than 85 million accounts by Cambridge Analytica--a firm embroiled in the US 2016 election/Russia mess.

This week, Facebook CEO Mark Zuckerberg has been on capitol hill trying to tamp down various fires and stave off any additional regulation the US Congress may impose in the wake of this PR disaster. So far, reviews are mixed. Zuckerberg was blessed by the fact that Congress--or at least the members of the Senate questioning him--seemed woefully underinformed about Facebook--and the internet more generally.

Under a barrage of questions from Senators who were roundly mocked as AOL email users rather than tech-savvy individuals, Zuckerberg avoided the worst outcomes and successfully handled most issues. However, it remains to be seen how these scandals will play out in terms of Facebook's user base, ad revenues, etc. We still don't know if users will quit en masse once the full details of the various privacy abuses are revealed.

Our models currently rate the stock a SELL. This is a downgrade from our last bulletin on the firm--when it was rated HOLD. We may see some fluctuation here, as the one-year forecast figure is hovering around -5% at the moment.

ValuEngine continues its SELL recommendation on FACEBOOK INC-A for 2018-04-10. Based on the information we have gathered and our resulting research, we feel that FACEBOOK INC-A has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Price Sales Ratio and Book Market Ratio.

You can download a free copy of detailed report on Facebook Inc. (FB)) from the link below.



ValuEngine Forecast
 
Target
Price*
Expected
Return
1-Month
164.33 -0.43%
3-Month
160.08 -3.00%
6-Month
157.14 -4.79%
1-Year
156.47 -5.19%
2-Year
133.78 -18.94%
3-Year
116.50 -29.41%

Valuation & Rankings
Valuation
17.44% undervalued
Valuation Rank(?)
78
1-M Forecast Return
-0.43%
1-M Forecast Return Rank
20
12-M Return
17.02%
Momentum Rank(?)
67
Sharpe Ratio
1.30
Sharpe Ratio Rank(?)
97
5-Y Avg Annual Return
36.64%
5-Y Avg Annual Rtn Rank
97
Volatility
28.25%
Volatility Rank(?)
54
Expected EPS Growth
17.90%
EPS Growth Rank(?)
45
Market Cap (billions)
461.62
Size Rank
100
Trailing P/E Ratio
25.47
Trailing P/E Rank(?)
50
Forward P/E Ratio
21.60
Forward P/E Ratio Rank
27
PEG Ratio
1.42
PEG Ratio Rank
24
Price/Sales
11.36
Price/Sales Rank(?)
11
Market/Book
8.51
Market/Book Rank(?)
18
Beta
0.72
Beta Rank
52
Alpha
0.04
Alpha Rank
66

 

DOWNLOAD A FREE SAMPLE OF OUR FACEBOOK (FB) REPORT BY CLICKING HERE

 

ValuEngine.com is an Independent Research Provider (IRP), producing buy/hold/sell recommendations, target price, and valuations on over 5,000 US and Canadian equities every trading day.
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Visit www.ValuEngine.com for more information

 

ValuEngine Capital Management LLC is a Registered Investment Advisory (RIA) firm that trades client accounts using ValuEngine's award-winning stock research.
Contact ValuEngine Capital at info@valuenginecapital.com
Visit www.ValuEngineCapital.com for more information

 

 
 
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