Facebook, Inc. (FB) opened at $335.74 and last traded at $330.73 x 800. More than 13,727,946 shares exchanged hands compared to an average daily volume of 19,162,842 shares. At the current pps, the market capitalization stands at 936.411B. This chart pushed up hard on Monday before coming back here with a lower volume. The XLC is a strong sector with GOOGL pushing here and so FB looks like an interesting opportunity. WallStreet may be looking for July 16 $330/$340 or $330/$350 Call debit spread.
Fundamentals you simply cannot ignore
Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Facebook, Inc. (FB) currently has a Beta value of 1.09. Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 indexes. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent.
Next, let’s take a look at Facebook, Inc’s current P/E ratio. Facebook, Inc. (FB) currently has a PE ratio of 28.30. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.
It’s important to take a look at the institutional holding in stock as their next move is to tout the company’s merits and drive interest in the stock and cause an increase in pps. The major holders so far as follows: 0.58% of Shares Held by All Insider, 80.33% of Shares Held by Institutions, 80.80% of Float Held by Institutions, 4,110 Number of Institutions Holding Shares.
The top 5 institutioanl holders are as follows: Vanguard Group, Inc. (The) – 183,156,795, Blackrock Inc. – 157,946,327, FMR, LLC – 124,984,398, Price (T.Rowe) Associates Inc – 104,548,050, State Street Corporation – 91,877,184.