NEW YORK (TheStreet) -- Facebook (FB) - Get Report stock is declining 0.14% to $105.59 on Wednesday afternoon as tech giant rival Alphabet (GOOGL) is taking initiative to accelerate web page load times on the mobile web.
Called Accelerated Mobile Pages initiative, Google's project is launching early next year, the company said.
Since Google introduced this effort in early October, it's been attracting attention from thousands of publishers like the BBC, Sankei and the New York Times.
The ongoing rivalry between Facebook and Google continues as Google doesn't want media outlets to publish their content on Facebook's platform since it's not accessible to Google's search engine, Business Insider reports.
This initiative is essentially Google's response to Facebook's "Instant Articles," which allows media companies to publish materials directly on Facebook rather than as links to their sites.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate FACEBOOK INC (FB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 40.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.96, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 75.64% to $2,192.00 million when compared to the same quarter last year. In addition, FACEBOOK INC has also vastly surpassed the industry average cash flow growth rate of 3.03%.
- FACEBOOK INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FACEBOOK INC increased its bottom line by earning $1.10 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $1.10).
- The gross profit margin for FACEBOOK INC is currently very high, coming in at 94.80%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 19.90% trails the industry average.
- You can view the full analysis from the report here: FB