The stocks of the world’s most popular online social network, Facebook, reached an all time high today. The California based website was launched on February 4, 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates. It has seen a steady hike in its stock price over the past few weeks and the gradual increment has led to its stock price’s all time high.
Facebook, Inc. Common Stock (FB) touched $131.98 during the early morning trading session on Wednesday. The stock closed at $129.73 on Tuesday but went up by over 1.40% this morning. This raise has not come as a major surprise to the traders as Facebook’s latest business plans and performances were slowly paving the way for this.
Along with Facebook, another major company saw its stock price hit an all time high today. The Washington based company; Amazon also saw its stock price reach an all time high today. Amazon is the largest Internet-based retailer in the world by total sales and market capitalization. Amazon.com started as an online bookstore, later diversifying to sell DVDs, Blu-rays, CDs, video downloads/streaming, MP3 downloads/streaming, audio book downloads/streaming, software, video games, electronics, apparel, furniture, food, toys and jewelry.
Amazon.com, Inc. (AMZN) touched $790.79 during the early morning trading session on Wednesday. The stock closed at $788.87 on Tuesday and inched up this morning to reach its all time high. Although the stock has been falling since then and has dropped by 0.40% by the noon, however this still remains a great moment for the company.
Many analysts have backed the raise in the price. “Amazon and Facebook are the two most innovative, dynamic companies in the world, but look at where they are. Look at how far they’ve come up recently,” an analyst said in a report.
But still, many experts believe that the prices of these stocks are overvalued due to various market reasons. Jeff Sica, the founder of Circle Squared Alternative Investments said, “The market is currently “artificially inflated by the Fed” so even though Facebook and Amazon have been doing what they should do to generate revenue and growth, they have become “overvalued.” He added. “So this is a time to be careful, not to invest with reckless abandon.”
Financial advisor Dan Stecich said, “I think these stocks are way overvalued, Amazon and Facebook, as Jeff just mentioned, are doing the right thing and getting some value out of it. The market will not stay as high as it is given the recent economic U.S. data that has come out, as well as recent earnings reports. We need some change here, and I don’t know when it’s going to come. But I’m not getting involved in any more stocks right now. ”
While many believe this to be the best time to buy these stocks, the analysts and experts have advised the traders to think carefully before buying these stocks and have given a “SELL/HOLD” rating to them.