Facebook’s value has soared to $215 billion after the company’s stock doubled since a May 2012 initial public offering.
Over the past two years, the stock is up nearly 150%, while the S&P 500 Index is up 37%. The rise is due to extraordinary growth in revenue, profit margins and earnings.
But that’s in the past. Let’s see what must happen for Facebook FB, -2.21% to continue its incredible ride. The Menlo Park, Calif.-based company will publish results after the close of stock market trading Jan. 28.
Before we dig into the financials, let’s start with one powerful visual. The chart below plots Facebook’s stock price in the orange line and net income in the blue bars.
The correlation couldn’t be easier to spot: Earnings go up and the stock price goes up. Of course, the real analysis lies in the details behind net income, like revenue, gross margins, operating margins, and selling, general and administrative expenses (SG&A).
Growth is also a major theme in any Facebook earnings announcement, and this is why. In the chart below, we plot market value on the x-axis and price-to-sales on the y-axis for all North American companies with market values over $50 billion.
Read more Click here / www.trade4x.net
Over the past two years, the stock is up nearly 150%, while the S&P 500 Index is up 37%. The rise is due to extraordinary growth in revenue, profit margins and earnings.
But that’s in the past. Let’s see what must happen for Facebook FB, -2.21% to continue its incredible ride. The Menlo Park, Calif.-based company will publish results after the close of stock market trading Jan. 28.
Before we dig into the financials, let’s start with one powerful visual. The chart below plots Facebook’s stock price in the orange line and net income in the blue bars.
The correlation couldn’t be easier to spot: Earnings go up and the stock price goes up. Of course, the real analysis lies in the details behind net income, like revenue, gross margins, operating margins, and selling, general and administrative expenses (SG&A).
Growth is also a major theme in any Facebook earnings announcement, and this is why. In the chart below, we plot market value on the x-axis and price-to-sales on the y-axis for all North American companies with market values over $50 billion.
Read more Click here / www.trade4x.net
No comments:
Post a Comment