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%.