Tag Archives: fb

4 Social Network Stocks With Long-Term Uptrend [Seeking Alpha]

While Nasdaq has gained 8.23% year to date, leading social media companies, except Facebook Inc. (FB) with only 5.17% gain, were up much more significantly, including Pandora Media Inc. (P) with 42.28% increase, LinkedIn Corp. (LNKD) with 53.03% surge and Zynga Inc. (ZNGA) with 52.35% advance, as seen from the chart below.

(click to enlarge)

Source: Google Finance

Facebook Inc.

Facebook, with a market cap of $62.25B, is the world’s largest online social network with over 1.06 billion total users and around 618 million daily active users.

FB was upgraded by Argus from hold to buy with a price target of $36.00 on April 5, 2013. On the same day, Oracle Investment Research initiated coverage on FB with a strong buy rating and a price target of $38.00, and the analysts said,

We think the new ‘Facebook Home’ hit a home run with their new HTC rollout. Incorporating Facebook as the ‘front and center’ theme to drive user interface on mobile devices.

Analysts currently have a mean target price of $33.20 for FB, suggesting 21.21% upside potential based on the closing price of $27.39 on April 5, 2013.

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Facebook And eBay: Buying On Pullback [Seeking Alpha]

Facebook Inc. (FB) and eBay Inc. (EBAY) are two leading online companies, with strong growth, receiving positive analysts’ calls recently. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be reviewed.

Facebook Inc.

FB was up 0.23% and closed at $26.55 on March 19, 2013. FB had been trading in the range of $17.55-$45 in the past 52 weeks. FB has a market cap of $63.25B.

On March 19, 2013, JMP Securities initiated coverage on FB with a market perform rating. Analysts currently have a mean target price of $33.44 and a median target price of $34.00, suggesting 25.95%-28.06 upside potential. Analysts, on average, are estimating an EPS of $0.13 with revenue of $1.45B for the current quarter ending in March 2013. For 2013, analysts are predicting an EPS of $0.57 with revenue of $6.66B, which is 30.90% higher than 2012.

Facebook on Tuesday announced “Lookalike Audiences,” a new feature for advertisers. The company claims the new targeting technique offers lower cost per checkout, lower cost per acquisition, larger purchase size, as well as faster and increased return on investment.

Fundamentally, despite the recent pullback, FB’s valuation remains unreasonably high with P/E of 2655 and P/FCF of 167.76. However, if FB can achieve its estimated long-term annual EPS growth of 29.04% for the next 5 years, the valuation will become more justified. On the positive end, FB has a total cash of $9.63B with a total debt of $2.36B. FB generates a positive operating cash flow of $1.61B with a levered free cash flow of $412.38M.

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5 Outperforming Social Network Stocks: Rebounding And Flying High In 2013 [Seeking Alpha]

The Nasdaq has logged a solid gain of 5.76% YTD as of February 8, 2013; however, it is much less impressive compared to the following 5 social network companies: Facebook Inc. (FB), Groupon Inc. (GRPN), Yelp Inc. (YELP), LinkedIn Corporation (LNKD), and Zynga (ZNGA). Below is the chart showing YTD performance for 5 social network companies, as compared to the Nasdaq index.

Source: Google Finance

More Mobile

In 2012, Facebook stated

we anticipate that the rate of growth in mobile usage will exceed the growth in usage through personal computers for the foreseeable future and that the usage through personal computers may be flat or continue to decline in certain markets, including key developed markets such as the US, in part due to our focus on developing mobile products to encourage mobile usage of Facebook.

This means that the future of social media will shift toward the networks that make engagement on the go easy. Traditional media must provide better mobile experiences and ensure mobile interfaces are streamlined and fast-loading. More revenue models also need to be established on the mobile platforms.

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Increasing Ad Spending Will Benefit Facebook And LinkedIn [Seeking Alpha]

Monday’s market sentiment was driven by extreme greed with Fear & Greed Index at 93, which had decreased from the previous close of 94. As reported by CBOE, the total put/call ratio was 0.97 for the day. The index put/call ratio was 1.01, and the equity put/call ratio was 0.76. The CBOE volatility index (VIX) put/call ratio was 0.46. In the following, top stocks had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 2.00 (2x of the average call volume) with a call volume above 10,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Facebook Inc. (FB) 425,927 196,461 2.17
LinkedIn Corporation (LNKD) 16,734 5,075 3.30

Source: Schaeffer’s Research

Facebook Inc.

Facebook is the world’s largest online social network with over 900 million monthly active users. According to most third-party reports, Facebook has more than 500 million daily users spending more time on facebook.com than any other websites. In 2012, Facebook became the most popular app in the United Stated and ended the year with more than 85 million unique adult visitors on Android and iOS, which is about 11 million more unique visitors than Google Maps. Investors are expecting more revenue from mobile advertising as Facebook is still in the early stages of developing ads for users who access Facebook via mobile devices. FB closed at $32.47 with 2.95% gain on January 28, 2013. FB had been trading in the range of $17.55-$45.00 since its IPO.

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Top Bullish Stocks On Friday: Facebook, Baidu And Research In Motion With Unusual Call Activities [Seeking Alpha]

The stock market closed mixed on Friday after Wells Fargo & Company (WFC) reported narrowing margins and waning mortgage applications. Dow Jones and Nasdaq managed to close higher with 0.13% and 0.12% gain, respectively. S&P closed flat after reaching its highest level in five years yesterday. DIA, QQQ and SPY all continued to close well above their 50-day and 200-day MAs. The sector of basic materials led the loss with 0.77% decline. Technology sector led the gain with 0.31% increase.

The market sentiment is driven by extreme greed now with Fear & Greed Index at 85, which is the same as previous close. As reported by CBOE, the total put/call ratio for today was 0.72, and the index put/call ratio was 0.55. The equity put/call ratio was 0.63, and the CBOE volatility index (VIX) put/call ratio was 0.17. In the following, top stocks had been identified through our daily options scanning process, with the scanning criteria where the daily call volume ratio was above 2.00 (2x of the average call volume) with a call volume above 50,000.

Name (Ticker) Call Volume Average Call Volume Daily Volume Ratio
Research in Motion Limited (RIMM) 212,659 75,910 2.80
Baidu, Inc. (BIDU) 53,534 21,899 2.44
Facebook, Inc. (FB) 301,019 129,822 2.32

Source: Schaeffer’s Research

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