Here I am going to make an attempt to value Facebook.
Facebook's stock fell precipitously on Q2 earnings announcement. Facebook's stock has been falling ever since driven by negative news about how Facebook was allegedly used to meddle in the 2016 US Presidential Elections. What is more, more negative news appeared related to privacy concerns in using Facebook and whether Facebook was selling off data about its users to third parties.
Facebook's stock is trading at around 128 USD today.
Facebook's market value fell from around 550 bln, USD to around 366 bln. USD today. This is a staggering loss of nearly 200 bln. USD.
So what is Facebook worth at the moment?
I believe Facebook is worth 30% more than its current stock market capitalization. I believe that the 30% higher value will be realized in the next 1-2 years. Basically, Facebook's stock has been oversold and too severely punished for recent company's missteps. So Facebook should be worth around 490 bln. USD.
In the last reported quarter Facebook's revenue grew by 32.91% and Facebook's net profit margin is a staggering 37.42%.
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Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!
Kind regards,
Petar Posledovich
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