Business

Is Investing In Facebook A Smart Decision?

The world today is ruled by technology companies and particular ones who are the kings of the internet. One company seems to own in all in the social media world, that company is Facebook. The company is one of the fastest rising in the financial world, with a market cap of just over 460 billion dollars. The sheer impact of social media is staggering, there are billions of users and the numbers will only continue to grow as more people in developing countries get access to the internet and mobile devices.

The company might seem like the most logical place to put your money in, but there are slight hesitations when it comes to investing in Facebook. The company suffered serious losses, of over 123 billion dollars due to the big scandal over privacy concerns and the committee hearing of the CEO Mark Zuckerberg. The company and their huge number of lawsuits and the implications it has on the third world are what deters investors from putting their hard earned money on such ventures. Their progress, however, is still quite strong and the company seems to be on a resurgent path towards success. As the earnings date fb comes closer, we shall take a look at what the investment strategy should be like and if it might be smart to hold on to your money and look elsewhere.

Facebook and how it appears earnings calendar

The confirmed earnings date for Facebook is the 30th of October, which is three weeks from now, ample time to look at what the predictions are and if they will work out as indicated. The PMAEA or predicted movement after earnings announcement is also quite high for Facebook and sits at around 6%. This number is the predicted movement of the company stocks in either direction come to the earnings date. Data analysts and stock experts reach on this number after examining conclusive evidence, such as past earnings date performances, the stock prices this year and how the company is acting on its fundamentals. All of these help the experts reach a number which is fairly accurate and you can make moves to position yourself to be able to get Facebook stocks or sell them if need be.

The strike price is set at around 12 %, which means that you can be rest assured of it touches this it is the best option to buy the shares. The reason why the PMAEA is so important is due to the fact that during this time the volume of trade is around 6 to 7 times as much as it is on a normal day. The same volume can be found seven days after earnings announcement date and it is also one time period when you can make your move and secure stocks of the company.

If all indications and signs are right Facebook is likely to see a big rise in its stocks over the course of the year. The company is one for the future and investing now could lead to big dividends over the course of time.  

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