NEW YORK (TheStreet) -- Facebook (FB - Get Report) rose Thursday after users who sued the social media company over its alleged releases of user identities to other parties could not revive the lawsuit via appeal.
The U.S. Court of Appeals in San Francisco ruled Thursday the users did not claim Facebook disclosed the content of their online activities, a mandatory component to progress the lawsuit under the Electronic Communications Privacy Act. The lawsuit had been dismissed in 2011.
Facebook users claimed the site "automatically and surreptitiously" gave information to advertisers about users and how they used the social media site's services when they clicked on advertisements "contrary to Facebook's explicit privacy promises," according to Bloomberg.
Must Read: Warren Buffett's 10 Favorite Growth StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The court also denied a similar appeal from Zynga (ZNGA) users Thursday.
- FB's very impressive revenue growth greatly exceeded the industry average of 20.6%. Since the same quarter one year prior, revenues leaped by 71.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although FB's debt-to-equity ratio of 0.02 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 13.15, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 177.77% and other important driving factors, this stock has surged by 122.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Internet Software & Services industry and the overall market, FACEBOOK INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FB Ratings Report