What led to the revenue growth in 2016 and 9M17?
Facebook (FB) revenues rose 54% and 47% in 2016 and 9M17, respectively. The US and the rest of the world drove the growth during the periods. Advertising triggered the growth offset by payments and other fees.
How did the diluted EPS perform in 2016 and 9M17?
Gross margin rose 58% and 48% in 2016 and 9M17, respectively. Operating expenses rose 29% and 34% in 2016 and 9M17, respectively. As a result, income from operations rose 100% and 63% in 2016 and 9M17, respectively. Interest and other income have also grown substantially in both the periods. All of these factors led to a 178% and 76% growth in net income for 2016 and 9M17, respectively. Diluted EPS rose 171% and 73% in 2016 and 9M17, respectively. The company has maintained a good free cash flow position.
How did the dividend yield and price perform?
The company has not offered any dividend yet. The company prices have gained 55.6% on a YTD basis. Facebook’s PE of 51.3x compares to a sector average PE of 33.5x.
How does the company compare to the broad indexes?
The S&P 500 (SPX-INDEX) (SPY) offers a dividend yield of 2.3%, a PE ratio of 23.3x, and a YTD return of 18.4%. The Dow Jones Industrial Average (DJIA-INDEX) (DIA) has a dividend yield of 2.2%, a PE ratio of 21.9x, and a YTD return of 23.1%. The NASDAQ Composite (COMP-INDEX) (ONEQ) has a PE ratio of 25x and a YTD return of 27.1%.
The iShares Core High Dividend ETF (HDV) is a dividend ETF with 12% exposure to technology. It has a PE of 21x and a dividend yield of 3.2%. The iShares International Select Dividend ETF (IDV) is a dividend ETF with 2% exposure to technology. It has a PE of 13.5x and a dividend yield of 4%.