Facebook Stock Witnesses Decline In Stock

Facebook, Inc. Tries To Take Over YouTube's Market; Witnesses Decline In Stock

The social network giant Facebook, Inc. since the last twelve months is trying to take over YouTube’s market, which makes up for most of the users who view videos on the internet. Currently, YouTube has dominance over the video views on the internet but thesocial media giant has been desperately making efforts to overcome that.

In a search conducted by Sandvine, a network company, the yearly internet usage of the video streaming website has grown from 14% to 17.9% while the social media network’s yearly usage has gone down from 3% to 2.5%. On Monday, the stock of the social media website was being traded at $105.61 with a loss of -0.54%.

The trading session held on Monday closed at a loss of 0.54%; Facebook stock throughout the session kept fluctuating between $104.66 and $106.83, with the former being the lowest at which the stock was seen at and the latter being the highest. Towards the end of the session, the shares of the company that were being traded were 15,474,890 shares. The outstanding shares of Facebook are 2,827,994, 100 shares with the current market capitalization of $298,664.

In the last twelve months, the highest level to which the share price was witnessed at was $110.65 and a low level of $72. A number of analysts, during this time, have commented on Facebook stocks one of which was a research and financial services firm, Argus Research. The research company has maintained its rating of the shares of the company at Buy. However Argus Research has raised the target price of the social media site’s shares to $130 from an initial target price of $115 per share.

As for gaining the video internet market, in comparison to Hulu, Netflix and Amazon, Facebook is still pretty far behind. On the other hand, the company has received a rating of Buy by stock experts at Rosenblatt Securities, research and financial services firm, as per the reports of MarketBeat. The target price that the research firm is estimated for the stock of the social media company is $125 which indicates an incline of 18.36% from the shares present price per share.

The earnings per share for the current quarter of fiscal year 2015 were reported by the company on November 4, 2015 of $0.57 which in comparison to the estimated EPS by analysts shows a difference of $0.05. As per the estimations of analysts the EPS of the company was supposed to be $0.52. Analysts had predicted that the company would report earnings of $4.36 million but the company for the quarter reported earnings of $4.50 million.

In the same quarter in the previous fiscal year (2014), the social company had recorded earnings per share of $0.43 with an increase in its earnings of 40.4% on an annual basis.

Facebook, Inc. Stock Analysis Suggests The Company Might Witness a Decline of 10%.

The stock analysis of the social media network suggested that in the near future the stock of Facebook might be trading at a share price of $93; not a very good news for the investors of the company.

On December 11^th Facebook Stock declined by 2.5% as the oil prices hit a low time in the past one year’s time. Both the Dow Jones as well as the NASDAQ indices were low during the trade by 1.5%. It is expected that the stock of the social media giant is likely to decline further by 10% trading at a share price of $93. Since August 24^th, the social media website’s stock has been increasing due to which the day is termed as Black Monday.

The global market has declined drastically this year due to the Chinese economic meltdown and the devaluation of Yuan. Due to this decline in the global market, Facebook stock has witnessed a decline of 15% in three days’ time. But since the decline the stock of the social media network has fairly been doing well and has seen an incline of 20% till date after reporting a good third quarter report on November 4.

Towards the end of the first week of November, there was again a decrease in the share price of the company after witnessing its high record of $110.65. Due to the fall in the global economy, the share price is expected to fall to $99.75 in the short term. Investors are seriously concerned with this decline as they believe if the share price goes below the mark of $99; the stock will witness a downward pressure.

In other news according to Reuter, the social media site is all set to launch its Facebook at Work service which is a professional communication platform in 2016. This is the social media network’s professional communication and networking platform comprising of the facebook ‘likes’ feature along with a chatting service. The social media corporation has been testing this service since last year during which it has worked on making communication easier amongst employees and co-workers.

The social media site in the last seven days has lost 3.84% and in the past 30 days has seen a decline of $1.76%. In comparison to the S&P 500 index the shares of the social media company are performing negatively with a loss of 0.33 % and have underperformed the index by 1.24% in a month’s time. At the trading session on Friday the stock of the social media corporation was trading at $102.12 per share with a high of $104.34 and a low of $101.91. The current market cap of the social media giant is 288.79 billion.