Deutsche Bank maintains its Buy rating raising its price target from $185 to $189.
Analysts are perpetually behind the curve on this, and shorts like Andrew Left continue to misunderstand what this company is. 2 years from now FB will be earning at least $8/share, if not $15. Slap a 30-40 PE on that and this stock will hit my $300 2-year target. Downside risk is that growth slows significantly, but I don't think it will. I believe higher competition for ad space will boost ad prices, making up for saturated ad load. New revenue streams may also contribute to growth.
A little bit about the FB split.
The split is really a stock dividend but is very much like a split.
The split is not being done for share holders. It is being done to dilute the voting power of most shareholders.
After the split there will be roughly 9 billion shares.
Share holders will get 2 shares non voting for every one voting share they have. They will in essence have their votes diluted by 2/3.
There is a lawsuit regarding the split because some share holders say that the split takes something away from them in voting shares. GOOG settled a similar lawsuit before they split their stock.
There is a difference in price between Googles 2 classes of shares. It is currently a little over 2%. FB will have twice as many shares created so due to demand the differential could be more.
Many high profile splits like GOOG and NFLX to name a few declined a year after the split.
I personally don't think the split will be bad but I don't see it doing too much for the stock. The split was not engineered to create shareholder value. It was created to give MZ more voting power. FB is doing fine and should continue to do fine split or no split.
FB should easily top $1000 in less than 5 years...
I've was bearish at the IPO, and I've been bullish continuously since $20, although only long since $80. I'm not even remotely considering selling a single share. Could hit $150 after earnings, could hit $180, I still won't sell. $300 within 2 years.
just for fun would the split look like a Google split? two forms of Facebook?
Will stock go up after earnings report or drop back down.
FB is earning 4.8 dollars a year. With PE 35, it should be priced at 168. Fair price. Except FB is growing and it is predictd to earn 6 dollars in 2018 and 8 dollars in 2019. Except FB may beat the 2018 forecast and earn 6.5-7 dollars. So FB can be valued at 200-220 at the end of the 2018 and 250 at the end of 2019. Whether this growth continues after that, is questionable at some point it will slow down.
I have to wonder if FB is going to be the dominate advertising venue for the next 50 years like network television was in the 1950's?
Realistically, what price do you think FB will be right before earnings? I think $168
Would $10k be a good investment in this Company?
this will be last time you will see 164 monday comes this will shoot up to 167
I have 500 shares , cost avg. 56.40 . Im fairly new and don't understand selling short or at this point selling this stock at all. I'm all in and staying right to the top. Facebook= the internet=Facebook . Simply put
Just bought more today. FB is undervalued big time! FB will be like Google, Apple, and Amazon in a few years. Unless I'm seeing this through Rose colored 👓.
Next step 180
I've unloaded yesterday and will be looking to buy again after earnings. But, do you guys think is good idea to buy small amount and sell it off the day before report? Just to pull small profit within couple of days
Harold, did you buy your wife's caddilac?
It's actually good to see a little consolation before earnings hit next week.
Cant be up every day. Taking a rest. See you at 185 in a month.