FB

Facebook Inc

TMT


Presented:03/18/2020
Price:$146.96
Cap:$418.90B
Current Price:$586.27
Cap:$1,483.16B

Presented

Date03/18/2020
Price$146.96
Market Cap$418.90B
Ent Value$545.48B
P/E Ratio22.84x
Book Value$35.43
Div Yield0%
Shares O/S2,850.45M
Ave Daily Vol18,891,600
Short Int1.10%

Current

Price$586.27
Market Cap$1,483.16B
Facebook, Inc. operates as a social networking company worldwide. The company engages in the development of social media applications for people to connect through mobile devices, personal computers, and other surfaces. It enables users to share opinions, ideas, photos, videos, and other activities online. The firm's products include Facebook, Instagram, Messenger, WhatsApp, and Oculus. The company was founded by Mark Elliot Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum, and Eduardo P. Saverin on February 4, 2004 and is headquartered in Menlo Park, CA.

Publicly traded companies mentioned herein: Amazon Inc (AMZN), Facebook Inc (FB)

Highlights

The presenter is long shares of Facebook Inc (FB) and recognizes that the recent decline in the stock price makes sense given that FB skews towards discretionary advertising and it's utilized by a lot of SMBs, which makes advertising revenue cyclical. Given the downward movement in price, the presenter believes it warrants taking a fresh look at FB as a core position. He thinks the Street misunderstands the impact of COVID-19 as well as the large opportunity for FB Shopping. The stock currently trades at 8.5x 2020 EBITDA and over the next 24 months the presenter sees 175% upside, by applying a 14x multiple to his 2023 EBITDA estimate he gets to a target price of $420.75/share. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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