The stock price of Facebook Inc (FB) has gone down by over 1.72% today till the late morning trading session. Since the afternoon trading session on Friday, the stock has slipped by over 4.50%. The stock closed at $129.50 on Tuesday.
The California based company is an American for-profit corporation and online social media and social networking service. The Facebook website was launched on February 4, 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.
The founders had initially limited the website’s membership to Harvard students; however, later they expanded it to higher education institutions in the Boston area, the Ivy League schools, and Stanford University. Facebook gradually added support for students at various other universities, and eventually to high school students as well. Since 2006, anyone age 13 and older has been allowed to become a registered user of Facebook, though variations exist in the minimum age requirement, depending on applicable local laws. The Facebook name comes from the face book directories often given to United States university students.
Facebook is expected to report its third quarterly earnings after the market closes today (Wednesday). Analysts are expecting a strong quarter for Facebook as the social network continues to grow its massive mobile advertising business and add users across its suite of apps. Analysts polled by Yahoo Finance expect adjusted earnings for the third quarter, ending Sept. 30, of 97 cents, up from 57 cents in the same period last year, and revenue of $6.9 billion, up 44% from the same period a year earlier when Facebook reported revenue of $4.5 billion. For the full year, the same analysts expect revenue of $27.2 billion, and earnings, excluding some items, of $3.93 per share.
Facebook has made some big product updates since it last reported earnings. Facebook launched a peer-to-peer buy-and-sell platform called Marketplace, made a series of updates to Messenger and in September, allowed people in Canada and Europe to pre order its Oculus Rift virtual reality headset.
Facebook has been criticized for a number of editorial decisions around monitoring controversial and sensitive content. Facebook, for example, chose to permit posts made by Republican presidential candidate Donald Trump that many have deemed to be hate speech, and temporarily removed, and then reinstated, posts containing the iconic “Napalm Girl” Vietnam photograph. Facebook has also featured a series of inaccurate and hoax stories in its prominent “Trending Topics” since revamping the section.
Our analysts have given a “HOLD” rating to Facebook’s stock. Despite today’s fall, there is a significant chance of this stock going up after its recent performance. Although it shows great potential, however due to the fluctuation, this is not the stock where you want to go all in on.