By analyzing existing fundamental drivers between Facebook and Chindata, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Chindata with a short position in Facebook. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Facebook has an asset utilization ratio of 191.07 percent. This suggests that the company is making $1.91 for each dollar of assets. An increasing asset utilization means that Facebook is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Facebook or Meta is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Facebook's Liquidity
Facebook
financial leverage refers to using borrowed capital as a funding source to finance Facebook ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Facebook financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Facebook's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Facebook's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Facebook's total debt and its cash.
Correlation Between Facebook and Meta Platforms
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Facebook together with similar or unrelated positions with a negative correlation. For example, you can also add Meta Platforms to your portfolio. If Meta Platforms is not perfectly correlated to Facebook it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Facebook, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Facebook and Meta Platforms in your portfolio? Please note if you are using this as a pair-trade strategy between Facebook and Meta Platforms, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between FB and META for more information.
Breaking down Facebook Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Facebook revenue. Based on the latest financial disclosure, Facebook reported 94.4
B of revenue. This is much higher than that of the Communication Services sector and significantly higher than that of the
Internet Content & Information industry. The revenue for all United States stocks is significantly lower than that of the stock. As for Chindata Group we see revenue of 2.08
B, which is much higher than that of the Internet Content & Information
| FB | 94.4 Billion | 97.84 |
| Sector | 0.0 | 0.0 |
| CD | 2.08 Billion | 2.16 |
Will Facebook continue to go out of control?
Current information ratio is at 0.12.
As of the 30th of July, Facebook shows the Semi Deviation of 1.26,
downside deviation of 1.47, and Mean Deviation of 1.39. Facebook
technical analysis allows you to utilize
historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Facebook, which can be compared to its rivals. Please confirm
Facebook variance,
maximum drawdown, and the
relationship between the
coefficient of variation and
jensen alpha to decide if Facebook is priced favorably, providing market reflects its regular price of 358.32 per share. Given that Facebook has
jensen alpha of 0.2224, we urge you to verify Facebook's prevailing market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Facebook
Whereas some other firms in the internet content & information industry are either recovering or due for a correction, Facebook may not be as strong as the others in terms of longer-term growth potentials. While some short-term oriented investors may not share our view, we believe it may be a good time to purchase new shares of Facebook.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Facebook. Please refer to our
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