Facebook Continues Double-Digit Growth - $200 Soon?

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Facebook Inc. (NASDAQ:FB) recently announced Q3 FY2017 earnings and once again delivered phenomenal growth numbers across the business with beats on both top and bottom lines with revenue of $10.33 billion and EPS of $1.59 translating into beats of $490 million and $0.31, respectively. Total revenue and net income were up 47% and 79%, respectively. Previously, I authored an article and put forth my thesis that Facebook was the preferred FANG stock, collectively comprised of Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOG), considering its growth and valuation relative to its FANG cohort. The Q2 FY2017 earnings reinforced this thesis. Facebook had been on an uptrend heading into earnings and broke through the $182 level.

The stock declined after the earnings call due to talk that the company will increase expenses to beef up its security workforce to combat “abuse on our platforms, ” and as a result, the stock sold off a bit to settle at $179 the next day. The stock has had a tremendous run YTD and is up 55.5%. These numbers may seem staggering, and some may contend that buying at these levels would be cashing the stock. Even at these levels and YTD appreciation, factoring in Facebook’s projected growth with technology comparators such as Google, Netflix, and Amazon, collectively known as the FANG stocks, Facebook is far superior with a lower risk profile. Facebook’s projected growth is more significant than Google’s yet has a P/E ratio that’s in-line with Google’s and a fraction of Amazon’s and Netflix’s. I feel that Facebook represents value even after this massive run and I maintain my long thesis. Continue reading "Facebook Continues Double-Digit Growth - $200 Soon?"

5 Stocks Ready To Rock

Hello traders and MarketClub members everywhere! It’s Thursday and I have five stocks for you that are ready to rock. Each of these stocks flashed a weekly Trade Triangle buy signal yesterday and all of them are sporting good technical chart formations.

Here are the five stocks I will be looking at and providing upside guidance for in today's video.

Infinera (NASDAQ:INFN)
Infinera Corporation provides optical transport networking (OTN) equipment, software, and services to communications service providers.

American Electrical Power (NASDAQ:AEP)
A public utility holding company, engaged in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers.

Ameritrade Holdings (NYSE:AMTD)
Provides securities brokerage services and related technology-based financial services to retail and institutional investors.

HCA Holdings (NYSE:HCA)
Provides health care services. The company owns, operates and manages hospitals.

Morgan Stanley (NYSE:MS)
A financial holding company that provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide.

I will be looking into each of these stocks in detail and providing guidance as to what I think is going to happen to each of them in the coming weeks and months.

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Have a great trading day,

Adam Hewison

President, INO.com

Co-Creator, MarketClub