Facebook Inc Continues To Move
“Weekly Options Members” Are Now Up 352% Potential
More to Come?
April 8, 2021
Facebook Inc shares
continue on their upward trajectory. The company
posted a 52% rise in earnings for Q4. Sales growth increased 33%, up from 22%
in the prior quarter. That marks two quarters of rising growth.
“Weekly Options Members” have gained potential profits of 352% since Monday,
March 29, 2021.
More upwards movement is expected, and for those that have exited the
trade, a new trade may be considered.
And still, $400 looks promising!
Why The Trade
Recommendation On Facebook?
This was explained in the original recommendation......Read about it
We also wrote an article the day after the trade where an 80% profit
was made in the first couple of hours – “Facebook Poised To Go Higher!”
to Now for Facebook Inc?
It appears that Facebook Inc is just getting
according to a new analysis of the stock from analyst Lloyd Walmsley at Deutsche Bank, who has raised the
target price of the shares to a new "street high."
new level is $385, from the previous $355. The former is more than 32% above
Facebook's most recent closing price. He's maintaining his buy recommendation
on the stock.
Walmsley believes that ad spending, a crucial source of revenue for the
company, will see a rise.
"We think investor focus is
starting to shift away from fears around iOS changes toward a continued ad
recovery and benefits from more eCommerce activity shifting into Facebook's
wrote in his research note explaining the price target hike.
already has a massive user base, so it can't rely on significant improvement in
those numbers to drive its business forward. Rather, it will be reliant on
expanding advertising take and other revenue sources for meaningful growth.
Walmsley thinks that it has several levers it can pull for this, including the
Tik Tok-like Reels video feature in Instagram. He's estimating that Reels can
potentially pull in $21 billion in revenue.
Facebook Inc has shaken off all sorts of political headwinds,
sidestepping ferocious opposition from the conservative side of the aisle, and appears
poised to break out in a major uptrend that could target 400.
analyst Brent Thill said on March 8 that the stock looked attractive following
a recent pullback. He added that it trades at a 40% discount to the Nasdaq
despite expectations that revenue growth will accelerate in 2021.
Wall Street consensus has a ‘Buy’ rating based upon 39 ‘Buy’, 4
‘Overweight’, 5 ‘Hold’, and 2 ‘Sell ‘recommendations. Price targets range from
a low of $220 to a Street-high $418.
Continues To Grow.....
Facebook Inc continue to climb as the social media giant benefited from
optimism about the vaccine rollout and the economic recovery later this year;
as well as some bullish analyst chatter. The tech stock did seem to benefit
from a rotation out of high-priced growth stocks and into value stocks, which
includes Facebook since the company now trades at a discount to the S&P
Facebook Inc ended the world's most challenging year in generations with
2.8 billion people visiting its namesake site each month. It had another 500
million unique visitors going to Instagram or WhatsApp on a monthly basis.
Combined, that's 3.3 billion people (over 42% of the people on the planet)
visiting a Facebook-owned asset at least once a month.
This is definitely the go to for advertising – one of the reasons Facebook
grew ad revenue last year by 21%. And, Facebook Inc has plenty of room to
increase from the $84 billion made from ad revenue last year which came from
Facebook and Instagram.
was a strong quarter for our business, as the acceleration of online commerce
we've seen during the pandemic continued into the holiday season," explained
Facebook chief operating officer Sheryl Sandberg during the company's
fourth-quarter earnings call.
Even more, despite continued significant uncertainty in some advertising
verticals, Facebook CFO Dave Wehner said he expects Facebook's year-over-year
revenue growth rates to "remain
stable or modestly accelerate sequentially in the first and second quarters of
course of the past month, Facebook has had several blog posts laying out its
strategy in human-computer interaction, or augmented reality (AR) and virtual
reality (VR), and the company said it was working on a wristband that would
control AR glasses. Facebook sees VR and AR as the next frontier in technology,
and its Oculus platform is one of the leaders in the space.
the social media giant announced Dynamic Ads for Streaming, a product that
laser-targets the growing legion of streaming video service providers.
"With Dynamic Ads for
Streaming, when people see an ad for your service in their feed, they can swipe
through the ad to see personalized, relevant titles they might be interested
in, based on interests they've shown on Facebook and Instagram," the company wrote, referring to both
its eponymous social networking site and its high-profile photo-sharing site.
"Audiences can also follow your
call to action to start a trial or subscribe," Facebook added.
cited research from Kantar indicating that 64% of people considering a
subscription to a streaming service are doing so based on its library, not an
As well, Facebook
Inc started public testing of a new application dubbed Hotline on Wednesday,
where creators can speak and take live questions from an audience.
product combines audio with text and video elements and comes as social media
platforms experiment with a rush of new live audio features.
of the invite-only, year-old app Clubhouse, which has reported 10 million
weekly active users, has demonstrated the potential of audio chat services,
particularly during the COVID-19 pandemic.
also very aggressive with its VR development, which is a market that many
believe will boom soon.
Toward the end of last month, Facebook's WhatsApp also got approval to
handle peer-to-peer payments in Brazil.