Facebook’s stock hits record high, recovers from historic downturn

Netease Technology News on January 11, according to foreign media reports, after user privacy issues raised concerns about falling profits, Facebook’s stock price finally began to recover from the historic downturn. On Friday, local time in the United States, Facebook’s stock price hit a new intraday high in more than a year.

Facebook briefly rose 0.72% on Friday afternoon, hitting an all-time high of $ 219.88, and then gave up that day’s gain, falling 0.11% at the close. On Thursday, the stock hit a record high closing price, surpassing the record set on July 25, 2018.

Bank of America securities analyst Justin Post previously said that he is now more bullish on Facebook’s performance because its monetization measures and spending management will play a positive role. Post reiterated its “Buy” rating and raised its target share price from $ 240 to $ 260, about 19% above its current level.

Post said that although Facebook’s stock did perform better than Google’s parent company Alphabet and the S & P 500, he still believed that the value of its products such as Messenger and WhatsApp was not fully reflected in the stock price. Facebook shares have risen 51.9% in the past 12 months, while Alphabet has risen 32.9% and the S & P 500 has risen 26.4%.

Post pointed out: “In 2020, we see incremental opportunities for Marketplace advertising, Instagram shopping features, and Instagram Explore advertising, and we believe instant messaging is still a long-term opportunity worth more than $ 20 billion.”

On July 26, 2018, Facebook’s stock price plummeted 19%. The company had previously unexpectedly warned that its profit margins had been squeezed for years. The move has heightened concerns about Facebook’s future threats, and people have previously criticized Facebook’s approach to user privacy, slowing user growth in the lucrative market, and a surge in “fake news.” The company’s stock lost nearly half of its value in a sell-off that continued into December 2018.

Facebook, Amazon, Alphabet, and Netflix belong to the so-called FANG stocks, and their strong stock performance has played an extraordinary role in the Wall Street rally in recent years. Data compiled by Refinitiv shows that despite Facebook’s efforts to restore its reputation, many companies continue to use its advertising platform, and analysts on average expect their advertising revenue to grow by 26% in 2019.

Highlighting signs of Facebook’s decline, the company’s ranking on the job site GlassDoor’s “Best Workplace” list dropped sharply, from seventh to 23 a year ago.

Leave a Reply

Your email address will not be published. Required fields are marked *