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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (69600)

1/23/2022 2:41:01 PM

From: Paul Senior

Read Replies (2) | Respond to of 78464

FB. So after Spekulatius's AMZN post, I said to myself, What about FB?. That one I can (and previously have) put a fair value multiple on. I calculate now that if its revenue and profit margins hold up, that fair value is $490 within 12 months vs. Friday's close about $302. So I have entered a buy order for a few shares. Stock is dropping, maybe much further, so I don't want to buy much. I already have a good size (for me) position. If these FANG's keep dropping, even holding on will be painful, let alone buying more shares.

Perhaps I'm way off base with my simplistic estimate of fair value. It could be much lower, and I might be proven very wrong. But at least for now, I have some idea what I might believe. (It's undervalued.). With AMZN, I've no idea.

I want to reiterate. With Meta Platforms stock you are getting a huge company still growing strongly per Yahoo

Quarterly Revenue Growth (yoy)

35.10%

...and bringing more than 1/3 of each revenue dollar to the bottom line.

Profit Margin

35.88%