Facebook (FB) Stock Gaining After Rolling Out Facebook Lite App

NEW YORK (TheStreet) -- Shares of Facebook (FB) are advancing 0.13% to $82.16 in Friday's afternoon trading session after the social media giant introduced Facebook Lite, a new version of Facebook for Android users, the company said.

The company is rolling out Facebook Lite in Asia, and over the coming weeks, it will be available in parts of Latin America, Africa and Europe.

The new app takes up less than 1 megabyte of storage space, allowing it to quickly install and load. This is significantly less than 25 megabytes, which is the amount of storage space the current app takes up, CNBC.com reports.

"In many areas, networks can be slow and not able to support all the functionality found in Facebook for Android," the company stated in a post. "Facebook Lite was built for these situations, giving people a reliable Facebook experience when bandwidth is at a minimum."

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 several positive factors, 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 41.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FB's debt-to-equity ratio is very low at 0.01 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 7.97, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for FACEBOOK INC is currently very high, coming in at 94.44%. 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 14.45% trails the industry average.
  • Net operating cash flow has increased to $1,700.00 million or 32.29% when compared to the same quarter last year. Despite an increase in cash flow, FACEBOOK INC's average is still marginally south of the industry average growth rate of 41.34%.
  • Compared to its closing price of one year ago, FB's share price has jumped by 26.18%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: FB Ratings Report

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