Research Portal

What's the Beef with: Facebook Inc. stock analysis


Facebook Inc (FB)

The social network has come a long way since “the” Facebook days, and in recent years as popularity grew, so did the share price. Amidst controversy about privacy issues, Facebook fighting #FakeNews about Facebook, downtime, and the Crypto hype, Facebook is still pushing boundaries every step of the way.

Click on logo to view Facebook stock
on EasyEquities

Fundamentals & Outlook

The social network has gained more than any other FAANG stock year to date and might be set for another leg higher. The latest announcement that Facebook will introduce its own “cryptocurrency” called Libra has raised the forward outlook on the stock.

Even though Libra is not a cryptocurrency as Libra will be backed by physical assets, it has certainly opened the door for new opportunities for Facebook to generate income and interest. Whether clients will trust Facebook to hold their capital remains to be seen.

The next highly anticipated quarterly earnings release date is set for the 24th of July 2019 and will be watched closely if regulatory and governmental backlash has filtered through. The Earnings Per Share (EPS) is estimated at $1.85/ share for the quarter, and revenue is expected to come in at $16.5 Billion. 

Chart Life:

Facebook has certainly gained momentum since the major sell-off we saw throughout the second half of 2018. The price action is currently trending upward, and a close above the technical resistance of $202 per share might inspire investors to drive prices back to all-time highs around $217 per share.

By looking at the fundamentals, it is possible to reach highs last seen a year ago, but it might be a bumpy ride back to the top. We might see some downside before we see the $217.50 per share target price in the medium term.

Source - Bloomberg

Portfolio particulars:

  • Portfolio Hold (Current)
  • Portfolio Buy opportunity: above $202.00 per share 
  • WhatsTheBeef Long term Target price: $217.50 

Know your company: Facebook (FB)

  • Peter Thiel, co-founder of PayPal, was the first major investor to back Facebook. Thiel, saw the site’s potential and invested $500,000 into the young company in 2004. He later sold his stake in the company for more than $1 billion.
  • Sean Parker, co-founder of now-defunct music sharing site Napster, originally acquired the domain name for $200,000
  • Facebook’s ‘Like’ button used to be the ‘Awesome’ button.
  • Facebook’s user base grows by eight people per second, or 7,246 people every 15 minutes.
Source - WordStream

Invest in Facebook 

Keen to add more US stocks on the EasyEquities platform?
Submit your share suggestion on this form

Invest in U.S markets via the EasyFX feature  


 Follow Barry Dumas

Barry image

Barry is a market analyst with, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a (“”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.