Facebook: “Best Risk/Reward Large-Cap Internet Stock” says Deutsche Bank

2

Facebook has been suffering from a series of bad news about the company, everything from employee dissatisfaction, to ACCC investigations and accusations on misusing privacy data.

Facebook stock (FB) prices have fallen more than 35% this year alone, wiping out any gains from last year and seeing new lows.

In response to this Facebook has issued a $9 billion dollar share buyback program because they claim that their stock is undervalued.

Deutsche Bank is now chiming in in agreement saying that Facebook stocks are “extremely attractive” at their current valuation.

Many investors have long suspected that the bad news is causing the stock price to fall and not the fundamental business itself which continues to be very profitable.

Deutsche Bank’s Lloyd Walmsley:

“We continue to view Facebook as the best risk/reward in large cap internet given the potential for core Facebook engagement to stabilize, for monetization in the Stories format to drive a potential re-acceleration in growth in mid-2019, for the negative news cycle to abate and given the extremely attractive current valuation.”

Facebook stock and in fact all of the FAANG internet stocks saw their share prices rise this early week. Facebook increasing by as much as 3%.

2 COMMENTS

  1. in my opinion Facebook is a good buy right now and one that many more people should be considering as a good value investment at this stock price. They are buying back their own stock, $9 billion worth so you can see that if they are behind their own stock we investors should be too.

  2. Buy FB. everyone should get the message that this stock is good for the longterm not just right now. It seems many people can’t see to the end of their nose.

    Facebook has Instagram, Whatsapp, and it uses them in smart ways. I mean look at what they are now doing in India with their new Whatsapp phones. They will take that market and get people onto Facebook.com and Instagram.com when they can earn revenue from advertising.

LEAVE A REPLY

Please enter your comment!
Please enter your name here