When Facebook decided to go public, it was a monumental move in the markets, resulting in a market capitalization of $104 billion. Facebook has seen exponential growth especially in the mobile-user market generating huge revenue through advertisement. However, with the Fed suggesting that social media stocks are overvalued, Facebook share fell by 1%. The social networking company’s growth appears to be slowing pace in recent months. The market awaits the earnings data to ascertain whether the slowdown is beginning. The Announcement is on 23rd July 2014, after market close.
Investors Notes:
- Facebook is expected to have recorded a 55% rise in revenue growth over the last year, totaling $2.8 billion.
- Facebook’s Earnings per Share (EPS) range is predicted to be between $0.32 and $0.39, but to see any significant rise in the share price, there will have to be a substantial move in the EPS announcement.
- Facebook’s target share price for this quarter ranges between $72 and $78, representing a buy signal.
- From a technical perspective, moving averages indicate further upward trending movement for Apple’s share price, further indicating stock as a ‘buy’.
- Banc De Binary analysts predict that Google stocks will post positive earnings results, indicating an upward movement in Facebook stock.