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Facebook: Down -4% After An Earnings Blowout Creates An Opportunity To Buy

Aug. 03, 2021 9:00 AM ETMeta Platforms, Inc. (META)24 Comments
Steven Fiorillo profile picture
Steven Fiorillo


  • Facebook continues to be undervalued and after the recent -4% after its blowout quarter, Facebook is an absolute buy.
  • Facebook continues to impress on the financial metrics as it has increased its net income conversation ratio to 36% throughout the 1st half of 2021.
  • Facebook is set to smash through the $100 billion revenue level for the first time in its history in 2021.
  • Facebook is positioning itself to be a dominant force in the evolution of business, content, AR, and VR which should generate significant growth for years to come.

Facebook Hosts Conference On Future Of Social Technologies
Justin Sullivan/Getty Images News

Selling the news is becoming tiresome, and it's almost as if people don't read the earnings reports or understand the numbers. I am shocked that anyone would want to sell shares of Facebook (FB) after

This article was written by

Steven Fiorillo profile picture
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha or https://dividendincomestreams.substack.com/

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FB, AAPL, AMZN, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (24)

Eliko profile picture
...BTW, your link dividendincomestreams.com - site can n not be reached
Eliko profile picture
Would help to keep the math right; a negative negative is a positive - down -4% means up 4% - which do you mean?
Looking good at $26 shortly after the IPO and NOT selling! My second best investment ever, next to AAPL.
Steven Fiorillo profile picture
@toshellyw Long and strong
Tony Montana Munich profile picture
Steven, thanks for the excellent article.
I am long FB since many years and will not sell any shares...
Steven Fiorillo profile picture
@Tony Montana Munich Your welcome, glad you enjoyed it
@Tony Montana Munich A very good move.
I have always advised"Buy Facebook on every dip for a target of $400 this year and $500 next year".
I am just wondering how they are going to monetize the Metaverse. In my opinion they want to take cuts on every transaction made for digital assets (WhatsApp pay evolved).
What is your thesis on that?

This metaverse chapter is exciting as hell, especially since wallstreet has no clube what is about the happen the next decade.
Steven Fiorillo profile picture
@Shivaro I want to see more of his plan. All I can say is I am extremely excited about AR, VR, and the Metaverse prospects
It seems like many other tech stocks FB is getting some respect with its financial performance and probably will reach much higher if any of their products in the pipeline ever get developed and sold to consumers. Got in at 124.50$ when FB hatred was flying high and was a good decision looking back.
Steven Fiorillo profile picture
@born_to_run Great decision!!!!!
@born_to_run Wow you sure got onto the bus at the right time. target this year is $400 and next year it will be $500. Do you plan to step down or remin seated then.
@A.Jay When I bought I believed FB was worth 300$ then but no one here even dared to write an article on that price it took a long time for this break out to happen, now people are writing it will go to 700$, my patience has paid off finally.
I agree completely with the financial analysis, expected future growth of FB earnings and the obvious discount that the market is applying. However, I question the short shrift you're giving to the clear regulatory risk to FB future business model, i.e. the statement "FB has faced these issues for years, and so far, nothing has materialized. Sure, FB has had to pay some fines but has anything impacted its business? Absolutely not" is laden with assumptions and falls directly in line with the Gamblers Fallacy.

There are very few areas in which democrats and republicans agree, but one of those is the necessity of reigning in mega-cap technology companies that derive their revenue from advertising and internet communications, i.e. FB and GOOG. I agree that FB earnings growth from future VR growth, international user growth in India and Brazil and monetization of WhatsApp internationally through WhatApp Payments will be massive. However, the extent of government regulation and legislation regarding FB businesses is only in its infancy and therefore the risk government activity poses to FB businesses is not yet fully understood or quantifiable.
Thanks for the article. Which is your number one FAANG stock right now pls?
Steven Fiorillo profile picture
@Rider1982 I need to review Google's quater. I haven't gotten to it yet. What I will say is I am not a fan of Netflix
The shares I bought at $38 & $62 are looking good. The ones at $78 & $117 not so good, Lol, like Apple just buy and bank it.
InvestInMETA profile picture
@Ralphieboy With the price hovering around $350, how are the shares you bought at $78 and $117 not looking good?
Relatively…. Not so good :-)
Steven Fiorillo profile picture
@Ralphieboy Thanks for reading and commenting.
Jeff_Canada profile picture
You have credibility (author) given you wrote/recommended the stock around $135 price level and since then have written 13 more articles. With the stock hovering around $350 I look forward to the next series of articles and the stock should be closer to $500 by then.

I am and have been a FB share holder for 5 years now and I am glad I held onto my shares.
Steven Fiorillo profile picture
@Jeff_Canada Thanks for reading and commenting.
YEAH BABY--------long and strong-------great article by Senior Fiorillo on a digital monster of this decade and decades to come!! Bravo Senior Fiorillo!!
Steven Fiorillo profile picture
@kevinconnolly Thanks for reading and commenting. I appreciate it
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