Facebook Comments

I think fundamentally Facebook looks great, and can perform really well. The company has incredible earnings, a huge margin, and is run lean. This equates to consistently pumping out profitable. It is remarkable because as one can imagine many marketing budgets have been slashed when one thinks of airlines, hotels, restaurants, gyms and many other industries not investing in marketing when their consumer demand evaporated. They are not in marketing mode investing in Facebook, they are in survival mode. As things improve there will be editional demand for the value FB offers its consumers. As for the underlying product it is doing well for them, and they have successfully created adaptation over generations. Well played Facebook!

COVID, working remote - they have handled this all very well, and will if anything adapt the technology company to be even better. With the horizon pointing towards their Libra payment system being introduced I imagine with all the crypto buzz there may be a enhanced demand anticipated from Facebook relative to the peers... this is even more pronounced when one considers that forward P/E comparison in the chart above.

Technicals are not screaming "Buy", but the price action is leaning slightly bullish, and the trend is moderately bullish. I'd be suggesting longing Facebook as a growth investment rather than as a perceived short term trade.

Whatever your TF, good luck & good fortunes to you!