Facebook FB announced today plans for a new cryptocurrency project called Libra. The much-anticipated news was welcomed by eager Wall Street analysts who are raving about where this new venture can take Facebook in the future. Some analysts have even gone so far as to state that Facebook’s new cryptocurrency initiative can become a worldwide currency. Tally CEO Jason Brown stated “It literally threatens the governments that issue currency, the banks that store it and the actual transmission network,” eagerly expressing the potential he sees in the project. Brown believes that Libra will be met with slow adoptions in its initial 2020 release for everyday expenses, such as paying bills but he thinks it will quickly become the most popular way to get money out of first world countries.
Facebook has also created a corporate organization called the Libra Foundation, which was formed to help the currency gain traction. Facebook itself is a member, as well as Visa V, PayPal PYPL, eBay EBAY, Lyft LYFT, Uber UBER, and many others.
Despite the current craze over Facebook’s newest project, the company’s looming user privacy issues are still a concern. Libra requires users’ trust in Facebook, and if the social media giant wants to ensure their project’s success, then they must figure out a way to earn back their user’s trust.
The unveiling of Libra comes at a time when Facebook is currently facing public and federal scrutiny for their user privacy policies. David Marcus, a Facebook executive, assured the public that consumers don’t need to worry about the social media company gaining access to their financial data. Marcus went on to state that Facebook needs to “make big commitments on privacy” establishing the stance Facebook must take in order to have project Libra take off.
Facebook is currently sitting at a Zacks Rank #2 (Buy) and is being traded at 26X its forward earnings with a PEG ratio of 1.32. Its lower than average PEG ratio indicates that investors would be paying less for the potential growth in Facebook than it would with other stocks in the industry. Furthermore, Facebook currently has a 3.75% earnings yield, further establishing the stock’s solid valuation. According to Zacks Estimates, Facebook has projected sales growth of 23.97% for this fiscal year, but earnings could see a decline year-over-year. In addition, Facebook has been able to maintain its stronghold in the industry this year, outperforming other tech industry giants on a year-to-date basis.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eBay Inc. (EBAY) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
Uber Technologies Inc. (UBER) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research