FACEBOOK STOCK ANALYSIS - Why it's Undervalued Now! | Summary and Q&A

10.1K views
October 18, 2021
by
The Intelligent Investor
YouTube video player
FACEBOOK STOCK ANALYSIS - Why it's Undervalued Now!

TL;DR

Facebook stock is currently undervalued due to the whistleblower scandal, but its long-term growth catalysts such as increasing advertising revenue and the Oculus VR headset make it a strong investment.

Install to Summarize YouTube Videos and Get Transcripts

Questions & Answers

Q: Will Facebook recover from the current whistleblower scandal?

While the scandal has caused a drop in Facebook's stock, similar incidents in the past have not had a lasting impact, suggesting a potential recovery in the future.

Q: What are Facebook's long-term growth catalysts?

Two key catalysts for Facebook's growth include increasing advertising revenue and the development of its Oculus VR headset, which aims to create a metaverse environment.

Q: What are the risks for Facebook?

One major risk for Facebook is antitrust issues, potentially resulting in the need to spin off acquisitions like WhatsApp and Instagram. Another risk is the impact of Apple's iOS 14.5 tracking option on Facebook's advertising business.

Q: Is Facebook stock currently undervalued?

Based on an intrinsic value calculator, Facebook stock is considered undervalued, with estimates suggesting a fair value of around $387.65 per share.

Summary & Key Takeaways

  • Facebook's stock has dropped due to the whistleblower scandal, but it has recovered from similar incidents in the past, indicating a potential short-term impact.

  • The long-term growth catalysts for Facebook include increasing advertising revenue and the development of its Oculus VR headset.

  • Risks for Facebook include antitrust issues and the impact of Apple's iOS 14.5 tracking option.

  • The use of an intrinsic value calculator suggests that Facebook stock is currently undervalued.

Share This Summary 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on:

Explore More Summaries from The Intelligent Investor 📚

Summarize YouTube Videos and Get Video Transcripts with 1-Click

Download browser extensions on: