FACEBOOK STOCK PRICE ANALYSIS | Summary and Q&A

TL;DR

Despite recent stock drops, Facebook's future growth potential is undervalued due to the potential increase in ad prices and the shift towards digital advertising.

Key Insights

• 🍉 Facebook's stock has experienced significant fluctuations, but its long-term growth potential may be undervalued.
• ☠️ The deceleration of revenue growth rates and issues regarding data privacy and regulation have contributed to the stock's recent drop.
• 🫠 The potential increase in ad prices on Facebook and the shift towards digital advertising can drive future growth.
• ☠️ The present value models highlight the sensitivity of Facebook's stock price to small changes in growth rates.
• 🍉 Investors should consider the long-term potential and incorporate Facebook into a diversified portfolio.
• 💄 Constant coverage and analysis of Facebook's stock is crucial for making informed investment decisions.
• ☠️ The valuation of Facebook's stock depends on its future growth rate, which can determine whether it is overvalued or undervalued.

Transcript

why did Facebook stock drop easy to buy now what is the key to watch their revenue growth deceleration and am i buying the stock now and how does that fit a portfolio good I fell investors my name is Frank Arlen I'm independent full time stock market and business analyst and today we are going to discuss what's going on with Facebook and why I thin... Read More

Questions & Answers

Q: Why did Facebook's stock drop recently?

Facebook's stock dropped due to the Cambridge Analytica scandal and a new revenue outlook that predicted decelerating revenue growth rates in the second half of 2018.

Q: What factors contribute to the growth potential of Facebook?

The potential increase in ad prices on Facebook, the shift towards digital advertising, and the monetization of features like stories and Instagram can contribute to Facebook's future growth.

Q: Is Facebook currently undervalued or overvalued?

Facebook's future growth potential suggests that it may be undervalued, as small changes in growth rates can have a significant impact on its stock price.

Q: Should investors consider buying Facebook stock now?

Depending on their risk tolerance and long-term investment goals, investors may consider buying Facebook stock, especially if they believe in its future growth potential.

Summary & Key Takeaways

• Facebook's stock price has experienced fluctuations due to various factors such as the Cambridge Analytica scandal and decelerating revenue growth rates.

• The present value models indicate that small changes in growth rates can significantly impact Facebook's stock price, leading to panic among investors.

• The main question regarding Facebook's future growth revolves around whether it will grow faster or slower, as this determines the stock's valuation.