Why miss an opportunity to be apart of iQLife?????? I sure as - TopicsExpress



          

Why miss an opportunity to be apart of iQLife?????? I sure as heck wont be. Im going to get paid to socialize! Read this about Facebook. Just a little FYI: How much is Facebooks market value now? By Chuck Mikolajczak, Reuters Posted at 07/25/2014 11:04 AM | Updated as of 07/25/2014 5:37 PM NEW YORK - In the days after its infamously mishandled initial public offering in May 2012, it looked as if Facebook would struggle to become a must-own for fund managers. Now the companys $190 billion market value makes it bigger than such bellwethers as Coca-Cola and AT&T. Its not a member of the Dow industrials, but if it were, it would be larger than two-thirds of that indexs 30 members. Shares of the worlds No. 1 social network touched a record high of $76.74 on Thursday after earnings and revenues easily topped analysts forecasts, boosting its market value to nearly $194 billion. That ranks it 15th in the Standard & Poors 500 benchmark index, just below the $196 billion market cap of International Business Machines Corp. A 100-year-old company with real assets versus a company admittedly with virtual assets and they are trading at the same market cap – crazy, said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. The speed of Facebooks rise to mega-cap status is whats notable. It took Apple Inc nearly three decades to achieve such a market value; Google Inc needed five years. Facebook has only been public for a little more than two years, and only joined the S&P 500 seven months ago. Since S&P Dow Jones Indices announced the addition on Dec. 11, Facebook shares have risen 54 percent. The gains represent a reversal of fortune for the social media company. After a botched IPO that infuriated investors in May 2012, the stock slumped, underperforming for 15 months before finally eclipsing its offering price of $38 in August 2013. Since then, Facebook shares have been unstoppable, doubling in less than a year. People understand the world is moving to mobile, and when you look at the time spent on mobile, Facebook has the lions share, said Walter Price, senior portfolio manager and managing director of the AllianzGI Global Technology fund, which owned more than a million shares as of June 30. The firm has leveraged its position by selling put options, or negative bets on the stock, and buying more call options, or bets on the shares rising further. This is a momentum stock you can put a P/E on, Price said. Facebooks rally has left e-commerce giant Amazon Inc AMZN.O in the dust. That companys value peaked around $187 billion in January, but closed Thursday at $165 billion. Amazon reported disappointing results afterwards, which dragged down its stock by 7 percent, valuing the company around $153 billion. Facebooks market cap is still dwarfed by the roughly $403 billion in combined market cap for the two classes of Google shares, arguably the most similar in terms of revenue generation. However, Facebook tops The Coca-Cola Co by about $15 billion and Disney by more than $40 billion. SHORT, QUICK TRIP Apple, the S&P 500s most valuable company, needed nearly three decades before its market value finally rose to more than $190 billion, surpassing that level in late December 2009. Googles move was swifter. The company went public in August 2004, and posted a closing market value of more than $190 billion for the first time in October 2007, right around the S&Ps peak before the financial crisis. Thats not to say there arent detractors. StarMine, a Thomson Reuters company, sees Facebook as more overvalued than 95 percent of the companies in its stock universe. Using expected growth rates over the next decade, StarMine puts an intrinsic value of $29 on the stock. It has a high price-to-earnings ratio of 42, more overvalued than 90 percent of the stocks StarMine tracks. However, the stocks relentless march has left few willing to stand in its way. Investors betting on the stock falling have dried up. In August 2012, more than 80 percent of shares available for short bets were being borrowed by investors expecting the stock to drop, according to Markit. Now, just 0.4 percent of shares available are being used for short bets. Of the 43 analysts with recommendations on the stock, 37 are strong buy or buy ratings, with six hold ratings. If you were looking to short names that were ridiculously overvalued and people were not even thinking the growth was going to continue, I wouldnt put Facebook in that category, said Stephen Massocca, managing director at Wedbush Equity Management LLC in San Francisco. That being said, do I buy Facebook here? From my perspective, I am a value investor - I wouldnt get anywhere near it with a 10-foot pole. That acceptance of Facebooks legitimacy as a successful and viable company makes the comparison to the classic names that now surround it on the market cap list more palatable. In some respects, Facebook speaks to a demographic shift in the way retailing, social media and virtually every other component of people’s lives is being bundled, said Peter Kenny, chief market strategist at Clearpool Group in New York. Investors are starting to see the brilliance of this platform in ways that haven’t to date really captured the imagination of many.
Posted on: Sun, 27 Jul 2014 20:29:51 +0000

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