Stock Performance
Facebook Inc.’s stock started out strong in the stock market in relation to volumes sold and has continued to increase in price over the past five years. As of February 21, 2018, Facebook Inc.’s stock is $180.05 (Value Line, 2018). On February 22, 2013, Facebook Inc. sold 177.5 million shares, priced at $27.13 per share. On February 10, 2017, Facebook Inc. stock price was $134.19 per share, which is an increase of $107.06 from 2013. On February 16, 2018, Facebook Inc. sold 124.8 million shares, priced at $177.36 per share. On June 7, 2013, Facebook Inc. recorded its lowest stock price at $23.29. Comparatively, on February 2, 2018, Facebook Inc. recorded its highest stock price at $190.28. Over the past five years the average stock price for Facebook Inc. is $97.53 (Facebook Inc., 2018). Value Line,
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a Price Growth Persistence rating of 100. Price Growth Persistence Rating is “a measurement of the historic tendency of a stock to show persistent price growth compared to the average stock. Value Line persistence ratings range from 100 (highest) to 5 (lowest)” (Value Line, 2018, para.). The industry mode is 25 or lower, with only 11 companies scoring higher than 80.
Financial Stability
Facebook Inc. is a financially stable company, with the highest gross margin, net income, and market capitalization in the industry of computer programming services industry. Value Line ranked Facebook on Safety, Timeliness, and Financial Strength. “Value line Safety Rank measures the total risk of a stock relative to the approximately 1,700 other stocks covered by the Value Line Investment Survey” (Value Line, 2018, para.). Facebook ranked three out of five according to the Value Line Safety Rank.