Since the latter half of 2013, Facebook stock price has been on a mighty charge higher, racing up over 100% since its kick start in September 2013. However, as we head into a normally quiet times for the markets, will this strength continue?
Well so far the signs are good, with a strong uptrend seen in the chart still in place. There is constant news on new developments at Facebook which could help lift the stock price. For instance, the acquisition of Oculus VR who “bring together designers and engineers around the world to collaborate and share their interest in creating the best virtual reality experiences”.
It is certainly an interesting punt for FB, with many seeing this as a step towards a virtual future on Facebook.
There is also a strong case to hold the stock from top websites such as theStreet, who stated:
“We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth.”
If the long term success of companies such as Google is to be mirrored, then holders of Facebook stock will most likely be rewarded well in the coming years, as long as the markets can remain strong. But no doubt they will have to hold through some bumps along the way, as nothing goes up in a straight line forever, the price will correct at some point before making further strides higher.Previous Post » Citi Leads The Market To Higher Ground