Is Facebook Inc (FB) Overvalued?

Facebook Inc (NASDAQ:FB)’s shares have been on fire lately. In the last two years to date, Facebook Inc (NASDAQ:FB)’s stock has returned 291 percent, but many believe that it has the potential to go much higher. While the majority of analysts are very bullish on Facebook Inc (NASDAQ:FB), there are skeptics like Janney’s Tony Wible, who even though downgraded the stock from ‘Buy’ to ‘Neutral’,  still has positive things to say about the company. Ari Wald, head of technical analysis at Oppenheimer & Co. and Chad Morganlander, portfolio manager at Stifel Nicolaus’ Washington Crossing Advisors, recently discussed their outlook on Facebook Inc (NASDAQ:FB)’s stock on Yahoo! Finance.

facebook FB logo

“The call is probably for a 5 to 10% pullback and that’s what the call is and that’s no surprise. Facebook Inc (NASDAQ:FB) is as growthy of a growth stock as you can get. We do like it here at Stifel Nicolaus. We have a ‘Buy’ rating on it with a price target of roughly $90 to $95 a share, but investors have to be cautious about the volatility of the company and know what they are getting into […],” Morganlander said.

Morganlander believes that in the course of next 24 months Facebook Inc (NASDAQ:FB) is going to see a revenue growth of over 35%, which means revenues for 2015 will stand at $15 billion and for 2016 they will amount to $22 billion. He considers that Facebook Inc (NASDAQ:FB) is a kind of investment where investors need to be pragmatic and if someone is a growth investor, they ought to put a small portion of their money in Facebook Inc (NASDAQ:FB)’s stock and profit from its volatility.

“It looks good and that’s why the downgrade based on stock performance is a bit of head scratcher for me. Really a stock coming off a new high isn’t a reason to sell it, when it has got a lot of other great things going for it […],” Wald added.

Disclosure: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!