Bull Vs. Bear On The Facebook Inc (FB) Stock: Who Will Win?

Facebook Inc (NASDAQ:FB) has done really well in the last week with share prices going up by around 7.5% and Facebook Inc (NASDAQ:FB) stock also had hit the all-time high on Friday. Facebook Inc (NASDAQ:FB) closed the week at $83.8. Many feel that the stock might continue to rally for the rest of the year and many other feel that the stock might start dropping soon. Jon Najarian and Moness, Crespi, Hardt & Co’s James Cakmak talked on CNBC about why they are bearish and bullish on Facebook Inc (NASDAQ:FB) stock respectively.

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Najarian said that Facebook Inc (NASDAQ:FB) CEO Zuckerberg has done incredibly well and he feels that it was main reason behind the company having 75 or 80 P/E. He feels that taking in Instagram and Whatsapp has been a masterstroke from Zuckerberg and the company’s valuation has gone up since the acquisition. But he feels that Facebook Inc (NASDAQ:FB) mobile ad-payment is overcrowded and he pointed that out as the main reason for placing a bearish bet on Facebook Inc (NASDAQ:FB) stock.

“[…] Now a lot of people are betting on payments and mobile-ads and so forth. Facebook ofcourse growing substantially in the mobile ad space, but as a lot of people have said, the mobile app install ads, in other words, for a lot of these companies are referring to as unicorns, where it’s a billion dollar valuation just out of nowhere, they are the ones buying these ads. That could dry up like that, if things turn south and also that’s a real concern, if you are somebody on the bullish side of Facebook,” Najarian said.

Najarian added that he like payments, but he feels that the payment that Facebook Inc (NASDAQ:FB) is doing is only through debit card is odd. He pointed out that JP Morgan and Citi tried this option before and finally decided against it.

Cakmak said that they are expecting a 40% growth for Facebook Inc (NASDAQ:FB) this year. Cakmak’s organization has set a price target of $95 for Facebook Inc (NASDAQ:FB) stock. He feels that there is a lot of growth opportunities like payments and so on for Facebook Inc (NASDAQ:FB). He said that Facebook Inc (NASDAQ:FB) is currently trading at half of LinkedIn’s valuation and 40% of Twitter Inc (NYSE:TWTR)’s valuation.

Cakmak thinks that the payments, which pushed the stock to a new high, will continue to push the stock up for the rest of the year. He said that it might not dry out as Najarian thinks.

Disclosure: None

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