Investors appear to be losing confidence in Facebook.
The social media stock is currently trading at a lower valuation—measured by its total value to its projected earnings—than any of the other major consumer tech companies. Most significantly, Facebook is now trading at its biggest-ever discount to Alphabet’s valuation, according to data from Koyfin (see above chart).
That performance is despite a 25% rally in its price this year that lifted its market capitalization to just under $1 trillion. And it suggests multiple factors are affecting Facebook shares: worries about the impact on its ad business of Apple’s clampdown on ad targeting, not to mention the constant barrage of negative media coverage and a federal government antitrust lawsuit.
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