ValuEngine Downgrades Facebook to SELL

For today’s bulletin, we take a look at Facebook $FB and provide a link to download a copy of our latest stock report on the social media giant.

VALUATION WATCH: Overvalued stocks now make up 38.9% of our stocks assigned a valuation and 14.82% of those equities are calculated to be overvalued by 20% or more. Seven sectors are calculated to be overvalued.
 

 

Facebook Inc. (FB) operates a social networking website worldwide. The Company’s products for users are free of charge and available on the Web, mobile Web, and mobile platforms, such as Android and iOS. Its website enables users to connect, share, discover, and communicate with each other. The Facebook Platform is a set of tools and application programming interfaces that developers can use to build social apps on Facebook or to integrate their Websites with Facebook. It offers products that enable advertisers and marketers to engage with its users. Facebook Inc. is headquartered in Menlo Park, California.

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The saga of Facebook continues with recent New York Times coverage reporting that founder Mark Zuckerberg and COO Sheryl Sandberg failed to properly handle the Russian election meddling on the platform and took a variety of steps designed to shift attention to other tech firms–Apple and Google–and that the company leadership also engaged in a variety of other shady practices.

This investigation revealed that Sandberg and Zuckerberg tried to conceal just how bad Russian influence was on the platform as well as the fact that the social media giant has been used to spread propaganda by governments and that it helped launch campaigns of hate and ethnic cleansing in other nations.

This additional bad press comes at a bad time. Facebook was already reeling from data breaches and other privacy problems. By all accounts, the company’s board was not pleased when they were finally informed of the full extent of Russian activities on the social media platform during the 2016 election campaign. Zuckerberg has faced increased scrutiny, and some have even suggested that it is time for the founder to step down as CEO.

VALUENGINE RECOMMENDATION: ValuEngine updated its recommendation from HOLD to SELL for FACEBOOK INC-A on 2018-11-16. Based on the information we have gathered and our resulting research, we feel that FACEBOOK INC-A has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Price Sales Ratio and Momentum.

You can download a free copy of our summary report on Facebook Inc. (FB) from the link below.

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 138.74 -0.57%
3-Month 138.54 -0.71%
6-Month 135.93 -2.58%
1-Year 130.01 -6.82%
2-Year 138.14 -0.99%
3-Year 139.49 -0.03%
Valuation & Rankings
Valuation 15.35% undervalued Valuation Rank(?) 66
1-M Forecast Return -0.57% 1-M Forecast Return Rank 15
12-M Return -22.31% Momentum Rank(?) 19
Sharpe Ratio 1.00 Sharpe Ratio Rank(?) 97
5-Y Avg Annual Return 22.13% 5-Y Avg Annual Rtn Rank 94
Volatility 22.16% Volatility Rank(?) 64
Expected EPS Growth -1.81% EPS Growth Rank(?) 20
Market Cap (billions) 390.27 Size Rank 100
Trailing P/E Ratio 18.89 Trailing P/E Rank(?) 58
Forward P/E Ratio 19.24 Forward P/E Ratio Rank 29
PEG Ratio n/a PEG Ratio Rank n/a
Price/Sales 7.52 Price/Sales Rank(?) 14
Market/Book 6.44 Market/Book Rank(?) 21
Beta 0.54 Beta Rank 61
Alpha -0.20 Alpha Rank 31

 

DOWNLOAD A FREE SAMPLE OF OUR FACEBOOK (FB) REPORT BY CLICKING HERE

 

 

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Steve Hach
Senior Editor
ValuEngine.Com