Background: Facebook operates a social networking website worldwide. The company's products for users are free of charge and available on the Web, mobile Web, and mobile platforms, such as Android and iOS. Its website enables users to connect, share, discover, and communicate with each other. Facebook trades an average of 39.8 million shares per day with a market cap of $43.6 billion.
52-Week High: $45.0052-Week Low: $19.82 Price to Book: 3.5 Fourteen of the 27 analysts covering the company give a buy recommendation, 12 analysts rate it a hold and one has given it a sell rating. I get asked a lot about Facebook by my noninvestor friends. At first it was, "Should I invest in the Facebook IPO?" and now it has moved to "Is Facebook a buy yet?" In No Friend of Facebook I suggest waiting until Facebook is in the lower teens, and even then I would only enter using options as a hedge. Selling puts instead of an outright buy is a lot more attractive than a straight position from my seat. I have remained bearish since before the IPO, and while I have shorted covered calls it was only for two days to capture low risk option premium. Shares have crumbled 29% in the last month of trading. TheStreet'sTimothy Collins writes about Facebook in his article Be Careful With the 'Easy' Plays. FB Free Cash Flow data by YCharts
I use Zacks.com, WSJ.com, Tradestation, and Reuters for my data. P/E is generally adjusted P/E based on an average number of shares. At the time of publication the author did not hold a position in any stock mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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