Facebook (FB): Why Is Facebook Stock Still A Buy?
Facebook stock (NASDAQ: FB) is priced at $276.40 today. What makes it a good and recommended buy is its consistent performance in the last one year or so.
Moreover, what can be attributed to Facebook’s success is its strength and stronghold, especially in the corona pandemic. This happened when more people resorted to online mediums for communication than before.
Facebook Stock’s Success
Furthermore, what can also be attributed to Facebook’s success is the fact that the corona pandemic is going to take much more time to ‘end’ and Facebook is going to be the prime mode of online communication amongst masses, where people stick at home to work.
Its stock, therefore, is going to rise. Facebook is also going to gain because of eCommerce ad growth, which is going to be high in the coming months, especially during Christmas.
Moreover, according to the analysts that cover Facebook stock, 42 have given it a Buy rating, and 6 rate it as hold which is pretty obvious to realize that its status is buy.
The company has a price target of $327.32, which shows a 15% return from its price on Tuesday. Its shares have gained significantly this year (by 41%), as the benchmark S&P 500 index rose by 20%. (More on S&P 500 index).
Furthermore, amongst other reasons to buy Facebook stock is the fact that it has a 52 week period- price target of $316.87 which shows that Facebook stock is going to rise in the coming months.
Facebook Stock Conclusion
Facebook’s stock has been stable and is a must add in your investor basket, especially if you want something concrete in volatile times.
Facebook is leading the ‘big tech groups‘ and has a lot more to gain in the months to come which keeps it in good books.