Stock (Symbol) | Stock Price | |
Facebook (FB) |
$40 |
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Data is as of | Expected to Report | Sector |
April 28, 2014 |
Jul 21 – Jul 25 |
Technology |
Sharek’s Take | ||
Facebook killed it last quarter, coming through with profit growth of 183% on a 72% increase in sales — the fourth straight qtr of accelerating sales growth. The company made 34 cents, and smashed views by 11 cents. FB only beat by 4 cents the qtr earlier, so this means business is gaining momentum. Last qtr my fair value on FB was $75 and the stock got past $70 before backing down with the rest of the high P/E growth stocks. Right now Facebook is undervalued by around 50% and I think it has a good chance to double by late 2015. | ||
One-Year Chart | ||
I love this chart pattern, nice soft correction. The P/E of 40 is very reasonable considering profits almost tripled last qtr. Estimates look solid and the company should continue to beat the street. This chart is all green. | ||
Earnings Table | ||
Profits soared 183% LastQtr, and revenue jumped from 72%, up from 63% 2QtrsAgo. Mobile ads were 59% of revenue, up from 52%, 49%, 41% and 23% the prior 4 qtrs. FB crushed the analyst estimates. It beat by 11 cents last quarter, making around 50% more than people expected. Wow. Annual Profit Estimates continue to increase. Quarterly growth continues to show rapid growth should continue. |
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Fair Value | ||
Facebook continues to be a top-tier stock worth 60 times earnings, now the stock’s undervalued by 50% and I think it could double sometime next year. | ||
Ten-Year Chart | ||
Two straight years of +60% profit growth. this company is amazing. Ten year chart doesn’t look great though. | ||
Power Ranking | Bottom Line | |
Growth Portfolio
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Facebook continues to show accelerated growth, which is amazing. This is a top-tier stock that can be purchased at a discount right now. I think Facebook can gain 50% this year and could double by next year. |
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Aggressive Growth Portfolio
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