When analyzing charts this weekend, I discovered that over the past 6 months a trendline has formed in Facebook (FB)…
Facebook Inc. (FB) is the world’s largest online social network, with 2.5 billion monthly active users. The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products.
The company has been benefiting from strong user growth, particularly in the Asia Pacific Region. Increased engagement in products such as Instagram, Messenger, and WhatsApp is a major growth catalyst for the company.
FB has a strong cash balance, with $55.6 billion as of the end of the quarter, compared to long-term debt of $9.6 billion. The company also has a very healthy current ratio of 5.5. FB is also very profitable with a net margin of 32%.
Growth has been strong as well, with sales up an average of 37.7% over five years. Earnings are up an average of 54.7% over the same time period. While the stock’s P/E is slightly high at 31.9, it’s still lower than its industry average and the S&P 500.
The stock has shown strong long-term and decent near-term momentum, leading to a “Buy” rating in our proprietary POWR Ratings systems. Its long-term momentum is reflected in its price chart.
Take a look at the 1-year chart of FB below with my added notations…
See chart and continue reading at STOCKNEWS.com