Futures indicate a green open today, adding to yesterday’s gains. In the previous session the Dow closed up 1.2%. The S&P was up 1.3% The Nasdaq led the way, with a bounce in big-tech, up by 1.9% in yesterday’s session.
Last week the Nasdaq fell 10%, with some of the major big tech components sinking 15% to 20%. Is the recent pullback an indicator of weakness in the technology sector? Or is it the gift of a more attractive entry point into some of the large cap tech stocks?
If you’re of the mindset that the recent sell-off was just a healthy breather on the way up for many large cap tech stocks, you may be considering taking a position in one of the giants. Consider Facebook (FB). Recent upgrades and additions to the Facebook experience will assist it’s users in coping with the continued need for online learning.
FB recently announced the launch of Facebook Campus, a platform for college students to attend college events online. The social media giant which runs Facebook.com, Instagram and Whatsapp is working on integrating the functionality of its family of apps. It has already integrated Messenger and Instagram chat to allow users to access both together.
FB is expected to see a revenue increase of 13.4% this year and 24% next year. FB’s EPS is estimated to grow 24.6% in the current year. At the late August peak, FB tested $300, a nearly 45% gain YTD. FB share price sank more than 12% since, offering a more attractive entry point.
