Facebook is an aggressive acquirer averaging 5+ acquisitions per year.
Being in the midst of a Value-Adding Acquisition Cycle, Facebook will increase its market dominance and price control and generate new synergies.
We use linear prediction and DCF modeling to reach a target price of $430.4.
Facebook has an asymmetric risk/reward profile with a positive alpha and non-systematic opportunities indicated at 18.38% annually.
Facebook (NASDAQ:FB) has acquired 5 companies per year on average. Each acquisition contributes to what we'd like to call a Value-Adding Acquisition Cycle, which improves the company's market dominance and price control,