Facebook Inc. (NASDAQ:FB), Instagram, Messenger and WhatsApp are ubiquitous in this digital age of social, mobile and cloud dominance. Facebook and its properties have dominated the social media landscape posting robust growth in all metrics pertaining to user growth, engagement and monetizing of such metrics, the latter more specifically in the last 3-5 years. Facebook’s earnings growth has been tremendous and has accelerated over the past 4 years. EPS has increased from $0.02 at the end of 2012 to $3.56 at the end of 2016, posting a ~17,500% rise over that period. For a large capitalization company such as Facebook, this growth is very impressive. Judging by the previous 4 quarters, and more specifically its Q1 2017 quarterly results, this growth doesn’t appear to be slowing down anytime soon while steamrolling rivals such as Snapchat (SNAP) in its path of growth (Figure 1). Facebook’s Q1 numbers continue to impress, posting revenue and EPS growth of 49% and 73%, respectively. Facebook doesn’t show any signs of letting up and makes acquisitions to drive the business now with Instagram and WhatsApp and into the future of virtual reality with Oculus. Factoring in its projected growth with tech comparators such as Google (GOOG), Netflix (NFLX) and Amazon (AMZN), I’m predicting that Facebook with hit $175 by the end of the year with a lower P/E ratio than any of the stocks above. If Facebook hits the $175 mark, the stock will still be cheap on a relative basis. My prediction suggests an 18% upside from current levels. Continue reading "Facebook Will Hit $175 By Year End"