Why Leon Cooperman Is Optimistic about Facebook
Cooperman on Facebook
Leon Cooperman has an optimistic view on Facebook (FB). The legendary hedge fund manager believes Google (GOOGL), Facebook, and Amazon (AMZN) are growth stocks that have the potential to grow significantly in the near future. In regards to Amazon, he said the company “is changing the whole landscape of retailing.”
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On November 1, 2017, Facebook was trading at $182.66. On a year-to-date basis, the stock returned nearly 48.6% as of November 1, 2017. Facebook reported its 3Q17 earnings results on November 1, 2017. It posted EPS (earnings per share) of $1.59, which beat analysts’ estimate of $1.28.
The stronger revenue growth and earnings growth are mainly driving the stock movement. The improvement in FB’s advertising revenue is adding more value to its overall revenue. The stock is presently trading at a trailing price-to-earnings ratio of 34.1x. The technology sector (XLK) is trading at a 28.0x, and the S&P 500 Index (SPY) is at 22.4x. Facebook’s one-year EPS growth rate stood at 15.1%, the technology sector stood at 18.3%, and the S&P 500 Index stood at 21.3%.
Technical indicators on FB
FB is trading 21.7% above its 50-day moving average, 37.2% above its 100-day moving average, and 7.7% above its 20-day moving average.
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