In this post we will go over Facebook. What exactly are Facebook shareholders getting in June? As of May 17, 2021, the company is listed at 315.46. Facebook has historical hype elasticity of 1.26. The average price elasticity to hype of competition is about -0.04. The entity is forecasted to increase in value after the next press release, with the price going to jump to 317.2. The average volatility of headline impact on Facebook stock price is about 42.18%. The price jump on the next news is forecasted to be 0.4%, whereas the daily expected return is currently at 0.25%. Allowing for the 90-day total investment horizon the next forecasted announcement will be in about 8 days.
On a scale of 0 to 100, Facebook holds a
performance score of 8. The firm shows a Beta (market volatility) of 0.4522, which means possible diversification benefits within a given portfolio. Let's try to break down what Facebook's beta means in this case. As returns on the market increase, Facebook returns are expected to increase less than the market. However, during the bear market, the loss on holding Facebook will be expected to be smaller as well. Although it is vital to follow
Facebook historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By reviewing
Facebook technical indicators, you can presently evaluate if the expected return of 0.25% will be sustainable into the future. Please utilizes Facebook
semi deviation,
jensen alpha,
maximum drawdown, as well as the
relationship between the
coefficient of variation and
sortino ratio to make a quick decision on whether Facebook
price patterns will revert.
Facebook technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, delisted stock market cycles, or different charting patterns.
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.
The current bullish price patterns experienced by current Facebook shareholders could raise concerns from investors as the firm it trading at a share price of
315.46 on
13,465,325 in volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in
April. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.13. The current volatility is consistent with the ongoing market swings in
April 2021 as well as with Facebook unsystematic, company-specific events.
Deferred Revenue Breakdown
Facebook Deferred Revenue is increasing over the years with slightly volatile fluctuation. Ongoing Deferred Revenue is projected to grow to about 412.2
M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Facebook Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 382 Million
| 2013 | 38 Million |
| 2014 | 66 Million |
| 2015 | 56 Million |
| 2017 | 98 Million |
| 2018 | 147 Million |
| 2019 | 269 Million |
| 2020 | 382 Million |
| 2021 | 412.16 Million |
Facebook has a small chance to finish above $322 in 2 months
Current jensen alpha is at 0.18. Facebook has relatively low volatility with skewness of 0.55 and kurtosis of 0.88. However, we advise all investors to independently investigate Facebook to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Facebook's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Facebook's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Facebook
Whereas many of the other players under the internet content & information industry are still a bit expensive, Facebook may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Facebook valuation and our trade advice on Facebook is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Facebook.
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Try AI Portfolio ArchitectRaphi 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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