Facebook stock hit record highs of $218.30 on Thursday, surpassing the previous peak set by the company in July 2018
Facebook’s (NASDAQ:FB) share price hit an all-time high at close of business on Thursday, surpassing the previous record for the stock that was set all the way back on the 25th of July 2018. For Facebook and its unfailingly enthused CEO Mark Zuckerburg, that date was as good as 2018 got. Amid data privacy scandals and reduced profit warnings, the stock careened from its lofty heights and the market cap of the world’s largest social media company almost halved in the space of 5 months. However, that downturn paved the way for those savvy investors with an eye for a bargain to pour in, setting the stock price on a steady trend upward throughout 2019 to where we are now, beginning 2020 at record highs.
Facebook’s Price Target Raised
Justin Post, a securities analyst at Bank of America, has raised his price target for Facebook stock from $240 to $260, which would represent a (roughly) 19% bump on the current price. His reasoning revolved around the value of both the Messenger app and Whatsapp not being fully reflected in the tech giant’s stock price and reiterating the strength of the company as an advertising platform.
Can Facebook Build on Its Record Highs?
Facebook’s exemplary 2019 performance eclipsed that of its advertising rivals and FAANG compatriots Google (NASDAQ:GOOG)(NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN), however, it could not manage to beat Apple (NASDAQ:AAPL) as the best-performing FAANG stock. The question at hand is whether Facebook can equal this performance in 2020.
While the company has kicked off the new decade in the best way possible, investors will not be spared the usual maelstrom that seems to follow the company wherever it goes. In recent years, Facebook has been providing the topic for debate almost as much as the platform for the debate to be held. If one has a spare hour on their hands, the criticisms and controversies section of Facebook’s Wikipedia entry provides enough ammo for any contrarian argument against the company.
If Facebook can come out of the news cycle relatively unscathed this year, the strength of its product stack and the advertising opportunities which they afford the company has the potential to push the stock to reach further peaks. However, this is a massive if. Zuckerberg and Co. are in the crosshairs of EU and U.S. regulators, and they certainly aren’t backing down, with the CEO doubling down on his promise to not fact-check nor disallow micro-targeting for political ads. In an election year, it’s hard to see the company staying out of the limelight. While the stock has massive upside, potential investors must be ready to weather stormy seas to get there.
Read more about Facebook here:
- Is Facebook in Trouble Again
- Facebook’s Copying Alphabet’s ‘Other Bets’ Strategy
- 3 Times CEOs Contributed to Stock Fluctuation
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