Sell Facebook, Inc (NASDAQ: FB) Over Growth Concerns

Facebook , Inc (NASDAQ: FB) is under pressure amid a lack of growth, fake news scandals and tough regulations from the European Commission. Recently, the European Commission proposed heavy fines for internet companies that do not take down questionable content from their platforms. That leaves Facebook in a quandary. If it starts removing content from its platform, users will go to other platforms, resulting in a lack of growth.

Earlier this month, MoffettNathanson lowered its rating for Facebook stock to “neutral” from “buy”. The firm thinks that Facebook ’s earnings will be less than expected, and the company doesn’t show any “meaningful” near-term path for outperformance.

Problems Facebook

Over the current book year the total revenue will be 55,64 billion USD (consensus estimates). This is quite more than 2017's revenue of 40,65 billion USD.

Historical revenues and results Facebook plus estimates 2018

stock prices

The analysts expect for 2018 a net profit of 21,26 billion USD. Most of the analysts anticipate on a profit per share of 7,18 USD. Based on this the price/earnings-ratio is 22,47.

Analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies is a moderate 0,5 percent.

Newest target prices around 203 USD

The most recent recommendations for the internet company are from Robert W. Baird, RBC Capital Markets and BMO Capital Markets.

Facebook 's market capitalization is based on the number of outstanding shares around 379,84 billion USD. The Facebook stock was the past 12 months quite volatile. Since last September the stock is 6 percent lower. This year the stock price moved between 149 and 219 dollar.

On Thursday, the stock closed at 161,36 USD.

Historical stock prices Facebook2007-2018

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