Look at the numbers alphabet and apple posted the last few days. Huge growth.
Facebook is not only growing but much worse, shrinking.
I’ve been bullish on FB from the ipo date but this seems like the beginning of the end unless the meta verse is out of this world
- On average, they net around 35 billion a year. With a valuation (MC) of 887 billion.
- On average, Google net around 51 billion a year. With a valuation of 1.8 trillion.
Facebook is making 68% as much as Google, with its valuation at less than half the price. And over the past 4-5 years Facebook's revenue has grown on average 32%/year, while Google grows 23%/year.
Really undervalued company IMO.
And their revenue did grow. They grew year-over-year. Just missed their target by 3%.
When (not if) Facebook stops growing, it will be worth _something_. Owning its stock is a bet on what that number is, and the stock price reflects the market's collective estimate.
It could mean they're really certain it'll be worth more later, or it (more likely) could mean they ran out of ideas and are trying to shore up the stock price, too.