August 16, 2022

News Collective

Complete New Zealand News World

Facebook avoids selling out of tech stocks

Facebook avoids selling out of tech stocks

Bloomberg – Meta Platforms Inc., matriz de Facebook (FB), relatively unscathed by the tech stock sell-off This week, $700 billion was written off the market capitalization of the Nasdaq 100 (NDXL) index.

Stocks have barely moved since the start of the year, while other massive capitalization operations, such as the parent company of Google, Alphabet Inc. (Google) s Microsoft Corporation. (MSFT)And They are experiencing their worst weeks since the early days of the Covid-19 epidemic Amid rising Treasury yields. Actions The target is up as much as 1.4% on Friday.

Resilience is a bit of a turnaround for Meta, whose shares have been under pressure for months amid renewed scrutiny of its holdings on social media. A drop of about 13% from its September high left shares cheaper than the alleged Faamg group. Which also includes Inc. (AMZN) y Apple Inc. (AAPL), based on projected earnings for the next 12 months. At 22 times future earnings, Meta . owns Discounted price of about 20% for the Nasdaq 100 average, according to data compiled by Bloomberg.

Facebook expected to see fastest revenue growth among Faamg stocks in 2022 with 19% expansion, according to data compiled by Bloomberg. These estimates are likely to reduce the company’s revenue growth potential if a new Instagram feed is widely tested and gains traction, according to UBS.

“Taking advantage of a broader content base can lead to a significant increase in engagement, reminiscent of TikTok,” analyst Lloyd Walmsley wrote in a research note on Thursday. Shares target price raised to $440 from $425.

See also  Ram is back with another preview of the new Ram 1500 EV that looks very different from all the ones on the market

the The average Wall Street price target for Meta stocks is $400, which means a potential profit of 20%, according to data compiled by Bloomberg.

It may interest you:

More aggressive Fed causes another crash in tech stocks

Nasdaq’s $1 trillion loss raises a bumpy road in 2022

The Nasdaq-listed company says it will offer its first Bitcoin dividend

This article was translated by: Myriam Salazar