I added more to my Facebook Inc (FB) position today at $196.7851. Facebook is still my 2nd largest holding.
The recent pullback makes for a good opportunity to add more or initiate a position. The valuation is great with a PEG under 1.
Like most stocks, it’s been taken down lower due to Coronavirus fears. Facebook should have less threats to their revenue and income than most and could actually have an increase if more people are staying home.
The real threats to Facebook continue to be new startups such as TikTok and Snapchat, government regulation over it’s influence and consumer data management and competition for ad dollars as Facebook depends almost entirely on that.
However, I continue to feel that Facebook’s dominance in social media looks great compared to competitors. Increased government regulation of the industry should help Facebook in long run making it harder or undesirable for new entrants. Facebook is working on other revenue sources. I am excited to see what they may be in terms of ecommerce in the near future. There seems to be a lot of opportunity there.
Myself and client I work with continue to spend more of advertising through their properties. While targeting is not like it used to as they have reduced some of the audience targeting abilities due to privacy concerns, it’s still the best out there, next to Google Ads.
Here is my previous analysis: Facebook Inc (FB) – Buy