| Stock (Symbol) | Stock Price | |
Facebook (FB) |
$47 |
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| Data is as of | Expected to Report | Sector |
November 13, 2013 |
N/A |
Technology |
| Sharek’s Take | ||
 Facebook shares lost some momentum after the company reported profits last quarter. It wasn’t the numbers that caused this fall, it was management’s comments that teens aren’t on Facebook so much. But when I compiled my data, I found these new numbers have never looked better. This stock looks great — a top five. Additionally, Facebook bought Instagram for $1 billion last year and the company is expected to put mobile ads on the picture site in 2014. |
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| One-Year Chart | ||
 108% profit growth last quarter. Bam. Now the P/E’s only 42. 35% profit growth is expected in 2014, and that number is rising. I’m surprised this stock’s so cheap. |
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| Earnings Table | ||
 60% sales growth last quarter, 108% profit growth. Mobile ad sales are now 49% of revenue, up from 41% and 23% the quarters prior.
Last qtr I wrote “If FB beats the street by a wide margin again, you could see the stock shoot up as analysts crank up estimates. I think this will happen.” Well the company beat, but the stock didn’t go up. Annual Profit Estimates are now on a trend higher, increasing by strong amounts. Quarterly estimates look fantastic. |
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| Fair Value | ||
 So in the Profit History table I see FB had a P/E of 59 in 2012 and it’s now 56. If FB gets a P/E of 60 next year — as I think it should — the stock’s got 44% upside to its Fair Value. |
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| Ten-Year Chart | ||
 Not much on the ten-year chart accept profit growth is expected to be 57% this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
3 of 25 |
Last quarter I said “This $38 stock is worth $45 but should hit $60 by next year — maybe sooner.” Now the stock’s $47. I continue to show tremendous faith in FB, and think it’s one of the top five growth stocks to own. This $47 stock looks to be worth $67 next year. FB is ranked 3rd of 25 stocks in the Growth Portfolio Power Rankings. and 3rd of 10 stocks in the Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
3 of 10 |
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