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Facebook Stock Price: $170-$190, Long-Term Growth Expected

Facebook's stock price has been on a roller coaster ride in recent months, but long-term investors remain optimistic about the company's prospects.

Facebook's stock price hit a record high of $218.95 in July 2018, but it has since fallen by more than 30% due to concerns about the company's privacy practices and its ability to generate revenue from its advertising business.

Despite the recent sell-off, analysts believe that Facebook's stock is still undervalued. The company is a dominant force in the social media market, and it has a number of promising new initiatives in the pipeline.

Growth Drivers

price of stock for facebook

Facebook has a number of growth drivers that are expected to fuel its stock price in the years to come. These include:

  • Advertising: Facebook is the world's largest digital advertising platform, and it is expected to continue to generate significant revenue from this business.
  • WhatsApp: WhatsApp is one of the world's most popular messaging apps, and it is expected to be a major driver of growth for Facebook in the years to come.
  • Instagram: Instagram is a popular photo-sharing app that has been growing rapidly in recent years. It is expected to be a major contributor to Facebook's growth in the years to come.
  • Oculus: Oculus is a virtual reality company that was acquired by Facebook in 2014. Virtual reality is expected to be a major growth area in the years to come, and Oculus is well-positioned to benefit from this trend.

Risks

Facebook faces a number of risks that could impact its stock price, including:

  • Privacy concerns: Facebook has been under fire in recent months for its handling of user data. These concerns could lead to increased regulation of the company, which could hurt its business.
  • Competition: Facebook faces competition from a number of other social media companies, including Google, Snapchat, and Twitter. If these companies are able to gain market share, it could hurt Facebook's growth.
  • Economic downturn: If the global economy enters a recession, it could lead to a decline in advertising spending. This would hurt Facebook's revenue and could lead to a decline in its stock price.

Valuation

Facebook Stock Price: $170-$190, Long-Term Growth Expected

Facebook is currently trading at a price-to-earnings (P/E) ratio of around 20. This is a relatively low P/E ratio compared to other technology companies, and it suggests that Facebook's stock is undervalued.

Based on its growth prospects and its low P/E ratio, analysts believe that Facebook's stock is a good investment for long-term investors.

Growth Drivers

Technical Analysis

The technical analysis of Facebook's stock price indicates that the stock is in a downtrend. The stock price is below its 50-day moving average and its 200-day moving average. This indicates that the stock is likely to continue to decline in the near term.

However, the technical analysis also indicates that Facebook's stock is oversold. This means that the stock is likely to rebound in the near term.

Conclusion

Facebook's stock price has been on a roller coaster ride in recent months, but long-term investors remain optimistic about the company's prospects. Facebook is a dominant force in the social media market, and it has a number of promising new initiatives in the pipeline.

Based on its growth prospects and its low P/E ratio, analysts believe that Facebook's stock is a good investment for long-term investors.

Tables

Table 1: Facebook's Stock Price History

Date Price
July 2018 $218.95
December 2018 $150.00
March 2019 $170.00

Table 2: Facebook's Revenue and Earnings

Year Revenue Earnings
2017 $40.65 billion $15.93 billion
2018 $55.84 billion $22.11 billion
2019 $70.68 billion $26.17 billion

Table 3: Facebook's Monthly Active Users (MAUs)

Month MAUs
January 2018 2.23 billion
January 2019 2.38 billion
January 2020 2.50 billion

Table 4: Facebook's Competitors

Company Market Share
Google 29%
Facebook 23%
Snapchat 18%
Twitter 12%
Time:2024-12-21 06:42:22 UTC

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