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How to chart financials for any companyThis chart shows some key financial metrics for Netflix. We're using the multi-chart layout feature to show the following financial situation: 1. Netflix Quarterly Revenue 2. Netflix Cash & Equivalents 3. Netflix Total Debt 4. Netflix Forward Price-to-Sales ratio With the financials feature on TradingView, we could chart a lot more than this. Including EPS, R&D, PE ratio, EBITDA, Market cap, and more. We wanted to share this layout with you to demonstrate what's possible. Whether you're a value investor or a short-term trader you can chart the financial situation for a company to better understand the fundamentals that are driving price or telling the story behind a particular asset. For example, Netflix's cash is growing and so is Netflix's revenue. But this chart layout shows that it's not all good news. Netflix has taken on some massive amounts of debt. Debt continues to rise as content becomes more expensive. This post is not investing or trading advice, instead it is educational. As a TradingView member, this data is available to you right now. You can examine the financial situation for Netflix or other companies. To get started, click the Financials button located at the top of your chart. The Financials icon looks like the bar chart 📊 emoji. Once you've opened the Financials menu, you can sort by Income Statement, Balance Sheet, Cash Flow, and Statistics. You can also use the search field to find specific financial metrics that are relevant to you. Before you head to the comments to leave a positive review with some interesting feedback 😁, we have a few more tips to share: 1. When you open the Financials menu, you can hover your mouse over a Financial metric. To the far right of that metric select either Quarterly or Annual. Quarterly will show you the numbers a company reported every 3 months or quarter and annual will show what a company reported every 12 months or full year. 2. For other financial metrics, when you hover your mouse over them, to the far right you will see a question mark icon appear. You can click this question mark to get a definition for that specific financial metric. So if you ever need to learn something new, it's just one click away. Below we've shared some examples: Price to Sales Ratio Research and Development Basic EPS Free cash flow Enterprise value Thanks for reading and following along. If you have any questions or comments, please write us below. You can also leave feedback or product requests. Our team is listening! 💙
NASDAQ:NFLXEducation
by TradingView
17
DoorDash (DASH): Everything You Need to Know After the IPOThis is my analysis on DoorDash (DASH), written prior to the IPO. Most of the information below is available from the S1 that the company filed to the SEC. This is not investment advice. This was written for educational purposes only. You are responsible for your investments and trades. Invest at your own risk. About DoorDash - DoorDash (DASH) is America’s #1 delivery & takeout platform, covering over 51% of the market share. - They currently have over 390,000 merchants, 1.8 million users, 1 million delivery workers (dashers), with an average delivery time of 35 minutes. - During the latest series H, which took place in June 2020, the company raised $400 million, and was valued at $16 billion. - Main competitors of this firm include Uber Eats (which acquired Postmates for $2.65b), covering 30% of the market share, and Grubhub, which covers 18% of the market share. IPO (Initial Public Offering) - DoorDash priced its IPO price at $102 a share - There was tremendous buy volume as soon as the market opened, with the stock reaching $195 at one point - The stock closed at $189 yesterday, after a successful IPO Business Model - DoorDash charges restaurants a 20% fee on average, for every order made on its platform. - On top of that, they earn money by charging customers fees for delivery, which normally ranges between $6-8 depending on the distance and current demand. - They also offer a subscription service – Dashpass – which exempts its users from paying service fees. - They have an extremely systematic virtuous cycle involving consumers, merchants, and dashers, in which the cycle creates local network effects, economics of scale, and increasing brand affinity. Financials - The company has shown tremendous and consistent growth in revenue over the years. - Nonetheless, they also continue to spend more and more and sales and marketing costs, as well as general administrative costs. - DoorDash is also one of the many companies that benefited from the Covid-19 Pandemic. - In 2019, the company generated $885 m in revenue, and in the first nine months of 2020, they generated over $1.9 b. - While these are extremely impressive numbers, it’s still important to take into account the fact that the company is still not profitable. - In 2019, they had a net loss of $667 million, and in the first nine months of 2020, they lost $149 million. - Nonetheless, a company not being profitable is common with unicorns and startups, as they seek growth as their number one target, keeping in mind that profitability follows easily once they dominate the market. - Another good news is that they currently have more cash and cash equivalents to cover their total liabilities, and thus won’t suffer from issues regarding lack of cash. - Given the current momentum in the delivery market caused by Covid-19, experts anticipate 2021’s revenue at $5.2 billion, which is a 93% yoy growth rate, with operating profits of $280 million, which is a 23% yoy growth rate. Risks - The company might not continue to grow on pace with historical rates - There is intense competition within the delivery industry - Reliance on merchants for the success of the platform - Their focus on expansion might not maximize financial results, and could result in lagging stock prices. Precedent - There are precedents of success regarding delivery & takeout platforms in other countries as well. - Baedal Minjok, South Korea’s largest food delivery app, is in talks of being acquired by Delivery Hero. - Baedal Minjok is a unicorn, which recorded a revenue of close to $8 billion in 2019. - Considering that their 2020 records will be even higher, due to the Covid-19 pandemic, we could expect DoorDash to do even better, since it’s the most dominant company of a bigger delivery market. - Precedent cases demonstrate that the food delivery industry has significant room for growth. - Nonetheless, considering that Baedal Minjok’s revenue is 8 times higher than that of DoorDash, and yet is valued at $4 billion is quite concerning for DoorDash, as it indicates that the hype and growth potential is factored into its valuation. Mike’s Insight In my opinion, I think DoorDash is a company worth looking into. It operates in a solid industry that benefits from the Covid-19 pandemic, and while the growth rate will slow down once the pandemic is over, precedent cases from other countries demonstrate significant room for growth. Nonetheless, since expectations for future growth seem to be factored into the company’s valuation, I’d be cautiously bullish on this company. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight :)
D
by Michael_Wang_Official
30
+15% profit (SAF) = Set and forget trade ( ͡° ͜ʖ ͡°)So , here is the trade i took a month ago (Along with my students ) . Made nice profit in that stock . More-over, At a time , Everyone was having " We'r all gonna die moment " but i stood up and said "NO" We'r going up and we did ! . Good luck everyone , keep learning until you become humble but please don't become broke , this business is great . Take it slowly or get an education there is no shame on asking for help . If you think it's shame to get help and education then you are another arrogant human being and the stock-market will take care of your EGO :) . #Trade_small #Stay_safe .
NYSE:AON
by K-alonzi
1
S&P 500 Weekly Daily Chart Analysis For November 30, 2020 Technical Analysis and Outlook The Spooz bounced off the Mean Sup $3,548 and heading to Current Outer Index Rally $3,750 , followed by Inner Index Rally $3,820 and Next Outer Index Rally $3,870 . The current ''Buy Zone'' and Mean Sup $3,625 stands as an excellent opportunity for buying once the prices drop this zone. To continue the rest of the market story, see the 'Weekly Market Review & Analysis For November 30, 2020" at the usual site.
TVC:SPX
by TradingSig
ECPG - Poised to move on Fundamentals? ECPG is well placed from both a fundamental and technical position. Had a very strong rebound in September/October before trading down in late October/November. Like the set-up heading into Q1 as Govt support runs off, as well as Balance Sheet strength of business. While there is yet to be a sustained technical position the fundamentals are very positive. Am long this name, despite the noise in teh price over the past few weeks. Has been signalling higher lows recently, which is a positive that supports strength going forward. There has also been insider buying in last few weeks which is a net positive.
NASDAQ:ECPGLong
by Fraser_G
Bitcoin (BTC/USD) Weekly Daily Chart Analysis For Nov 23, 2020Technical Analysis and Outlook Bitcoin's sudden drop should not be a big surprise to us. The completion of Outer Coin Rally $18,500 on Nov 18th and significant TARC formation (TSS proprietary symbol not shown) within the buffer zone of All Time Key Resistance $19,650 was the red flag. The coin 3-Step rebound to Key Res $19,190 , Inner Coin Rally projection $19,800 , and the Outer Coin Rally $22,600 is in the process. There is, however, a remote possibility of one more drop to Mean Sup $14,865. See 'Weekly Market Review & Analysis For November 23, 2020, page to continue the rest story.
COINBASE:BTCUSD
by TradingSig
Airbnb (ABNB): Everything You Need to Know for the IPOAirbnb is an online rental marketplace for lodging, home stays, and tourism experiences. The company does not own any real estate listings, but offers a platform through which people can take part in the sharing economy. Airbnb announced its filing for an initial public offering (IPO) in August. In this analysis, we’ll be going over everything investors need to know about the IPO, and my own insight on whether this is a golden opportunity. Most of the information provided below is based on the S1 Airbnb Submitted to the SEC. Disclaimer: This is not financial advice. This is meant for educational and entertainment purposes only. Business Model - Airbnb connects hosts who are willing to provide room, with guests - Airbnb profits from charging a service fee to both the host and the guest - While it initially started off as hosts providing bedrooms, the company has managed to find and expand on different types of lodges. - Airbnb is well known for its systematic operations; they have a unique guest/host review system, rules regarding cancellations and deposits, and is oriented and focused on building a community. Counterparts Cases - Airbnb’s counterparts include companies like Expedia group (EXPE) and Booking Holdings (BKNG) - It’s important to take into consideration the growing competitiveness within the booking market. - Unlike Airbnb, both Expedia group and Booking Holdings are reporting solid earnings as their operating profits increase yoy. - TripAdvisor (TRIP), which reported $156m in revenue for 2019 and an operating profit of $18.7m, while small, is another example of companies competing against Airbnb - However, to be fair, these companies also all fell victim to the Covid-19 pandemic. IPO Information - The company will be listed on the NASDAQ exchange under the ticker ABNB - The specific date of the IPO and price per share is yet to be officially announced. Financials - Due to Covid-19, the company’s revenue and profitability plummeted in 2020. - Q2 2020 revenue was $350m, which is a 67% compared to Q2 2019, which recorded a quarterly revenue of over a billion. - These numbers are less than half of the reported revenue for Q1 2020, of $842m - As a result, the company’s valuation dropped from $31b to $18b. - The fact that the company is not profitable yet is also quite fatal. - In 2017 and 2018, there was a lot of hype around the company as they showed positive numbers for their EBITDA (earnings before interests, taxes, depreciation, and amortization) - But, the company has been reporting inconsistent revenue ever since, and their sales and marketing - As of September 30 2020, the company has $2.6b in cash, which is more than numbers reported for cash and cash equivalents in 2019 and 2018. - Nonetheless, this is way below their short term net liabilities of $4.38b, which is considered a warning sign in terms of financial stability. - Additionally, they have $1.8b in long term debt as well. - Taking all of this into consideration, we could make an educated guess that Airbnb is trying to seek for funds through this IPO. - It has already undergone its Series F investments, and is a unicorn company (a private company with a valuation over $1b), which makes it difficult to receive any further meaningful investments. Covid-19 Impact - Airbnb is part of the industry that was arguably most heavily affected by the Covid-19 pandemic - They had a net 4.1m cancellations in March, when fear regarding Covid-19 peaked. - I’ve mentioned this in a previous analysis, but Covid-19 has fundamentally changed the way we live forever - As a result, Airbnb’s goal of creating a community of hosts and guests has faced a huge obstacle, as people prefer to stay at hotels, which involve lower risk of Covid-19 infections. - Thus, whether people would want to travel via Airbnb after the pandemic is solved still remains extremely murky, as clear solutions to the current situation are yet to be proposed. - Unlike other large tech companies, Airbnb lacks the cash to endure a long phase of hardship. - Due to the impact of Covid-19, the company has laid off over 1,900 employees to cut costs. Historical Cases - We have seen other companies within the sphere of the sharing economy take part in IPOs that have failed miserably - Companies such as Uber Technologies (UBER) and Lyft (LYFT) are prime examples. (Refer to the charts on the right) - They were provided multiples way above their actual value, and their stock prices eventually fell way below the IPO price. - WeWork, once valued at $47b, failed its IPO due to massive debt and shaky corporate structures, and is now valued at $2.9b - Given past cases of other tech companies within the realm of the sharing economy having undergone failed IPOs due to overvalued multiples, it’s important to consider why Airbnb might be exempt from this case. Mike’s Insight In summary, while Airbnb’s listing is arguably the most important IPO of 2020, investors need to consider all possible factors before participating in the IPO. Its growing number of users suggest that the business is on the right track over the long run, but is faced with a serious external risk that the company has no control over. As this risk extends throughout time, the more damaging it is to the fundamentals of the business, thus providing room for investors to reconsider the proper valuation of the company. In my humble opinion, given that the company goes public at a $30b valuation, I think we’d see prices drop sharply after the IPO. Nonetheless, I could consider adding it to my portfolio as we see clearer signs of the world recovering from the coronavirus. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight :)
NASDAQ:ABNB
by Michael_Wang_Official
52
Alibaba (BABA): Dissecting the FUD, Fundamentals, and TechnicalsAlibaba Group is a Chinese multinational tech company specializing in e-commerce, and IT. This Chinese company is listed on the New York Stock Exchange (NYSE) as BABA. In this analysis, I’ll be covering the company’s fundamentals by looking at its business model and financials, as well as technical analysis for the stock. I’ll also be providing my own insight on why this stock has been rather underperforming for the past few weeks, and what we can expect for the future. Business Model - Alibaba, while it initially started with a focus on e-commerce, has expanded to other territories as well - It aims to offer the necessary digital infrastructure as an e-commerce platform, providing small businesses the necessary tools and equipment to operate online. - Alibaba also takes part in cloud computing, just like AWS and Azure, offering data storage, big data analysis, and machine learning services. - Alibaba also has a business dedicated to digital media, producing original content - Alibaba owns 33% of Ant Financial’s shares, which is what affected the price action so heavily recently Ant Financial IPO FUD - Ant Financial is a company that was formerly known as Alipay. - Its expected market valuation after the dual listing was expected to reach over $310 billion, which would have significantly affected BABA’s price as well. - However, the Chinese Communist Party halted the Initial Public Offering (IPO) of this company, without an official explanation. - Ant Financial has transformed the way Chinese people interact with money. It challenged China’s banking system by brining easy use of payments, borrowing, and investing through smartphones across the entire country - Ant Financial’s business model, in essence, puts financial services outside the direct control of the CCP and Chinese banks Financials - So at this point, we understand why Alibaba’s stock prices have been negatively affected by news. - Looking at the company’s financials, we can discover that the firm’s fundamentals remain solid - The company has shown a parabolic growth in their revenue since 2010, reaching record highs for the 2020 Estimate - Accordingly, its operating income grows at a steady pace as well. - Its gross profit margin averages at 55.5%, which is considered as extremely high profit margins - They did report a decline in yoy EPS for the 12 months ending in September 30, 2020, and a 60% yoy decline in the EPS for the quarter ending at the same time. - Nevertheless, it has still managed to beat the consensus EPS, and continues to demonstrate yoy growth Technical Analysis - This is the weekly chart for Alibaba - We can see that it was consolidating in a rising wedge pattern, before breaking out in July 2020. - Due to the Ant Financial IPO cancellation FUD (fear, uncertainty, and doubt), stock prices fell from $320 down to $255. - Elliott Wave counts suggests a further potential downside to $220-230 levels, where it could complete the corrective wave at the gap support - We can also see that prices have never broke down the 150 Simple Moving Average (SMA) on the weekly. - This indicates that the converging point of the 150 SMA and the 0.618 Fibonacci retracement support at $200 could be considered our last line of support - Thanks to the recent corrective move, however, the Relative Strength Index (RSI) has been flushed out to neutral levels, from overbought territories - It seems as though the RSI could bounce on the trend line support soon Conclusion Alibaba is a solid company with strong fundamentals and financials, as well as a business model that expands throughout a wide range of areas. It has fallen victim to the restrictions imposed by the Chinese Communist Party recently, but it’s important to understand the role this company plays for the Chinese economy and the world economy. Companies like Alibaba are essentially too big to fall. There are attempts made by governments of various countries such as the US with big tech companies, and South Korea with Samsung Group, to regulate dominant firms. Regardless, none of them have actually succeeded besides a small correction in stock prices driven by FUD. As such, while technical analysis suggests further potential downside, I believe that investors should approach this stock from a buy perspective. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
NYSE:BABALong
by Michael_Wang_Official
10
LONG REP/USDT - setting up for possible breakout...Augur is a decentralized prediction market project aiming to use “The Wisdom of the Crowds” to create an accurate forecasting platform. Augur is creating a decentralized open-source prediction market platform and oracle service. The project was founded in 2014 and released an alpha version of the platform in June 2015. Due to issues with the Serpent language, which pre-dated Solidity, the team had to re-write their code in Solidity leading to a delay in development. Augur launched their beta in March 2016 and mainnet in July 2018. Prediction markets on the platform will enable users to create a market for forecasting a specific future event, such as who will win the next election or which team will win the World Cup. Participants in the market will be able to buy “shares” of the specific outcome they see as most likely. At the end of a pre-determined period the outcome is checked and those that own shares in the correct result receive a monetary reward. Prediction markets can be useful tools in tracking the true sentiment for results, as typically only the most informed individuals will risk money when making a prediction. The team believes that by creating a fully decentralized prediction market they can overcome issues seen in centralized markets such as needing to trust that a result is correctly reported and that a payout is received. In addition, by creating a framework for the creation of these markets users can forecast the outcome of almost any event. Once a market is created trading begins immediately. The outcome of the event is determined by Augur’s oracles which are incentivized to report on event outcomes. Upon determination of the outcome, traders can close their positions and collect their payouts.
RLong
by HodlTradeCrypto
DJI Weekly Daily Chart Analysis For October 26, 2020Technical Analysis and Outlook Since Dow Jones Industrial Average intermediary trend of the 'Inauguration of Donald Trump' line, we have completed the Outer Index Rally $29,500 and developed a significant Key Sup marked at $29,132 . The stocks will need to complete the Inner Index Dip $25,853 to launch a meaningful rally to Mean Res $27,570 and encounter major Key Res $29,132 , and this will signify the challenge of the completed Inner/Outer Rallies. To continue the rest of the market story, see the 'Weekly Market Review & Analysis For October 26, 2020" at the usual site.
TVC:DJI
by TradingSig
Biggest market CRASH ever in human history incoming!The MASSIVE lockdown is about to come in all of Europe, so i think the MASSIVE CRASH is also coming find ourselves facing one of the largest bull trap which has ever had in history many people is in denial and long all ETF and imagine that the markets will go up ad for ever because of monetary support of FED Do not tell me that “the market already priced this” you sincerely think that we priced GDP will very likely go down more than 20% in many countries, probably also including the US? we find ourselves in one of the biggest global crises since 1929 if we count stats Do no say it's just a simple virus in fact who cares whether it is a basic flu or not but the political consequences of lockdown and other measures is here without counting the probable future political crisis in the USA due to the likely contestation of the presidential election results and the probable lockdown of democratic states I'm amazed to see so many bullish people currently who don't want to see the reality the of the economy number in the face it's funny how so many people were bearish in 2017 and 2018 when there was no reason to be bearish on this on the market and that now when there are clear signal of recession people are bullish but here it is always like that this is what is called the famous dead cat bounce and here Massives natural selection is coming sorry to say a lot people investing on market right now they thought to be the best thinking market will go up for ever like crypto in 2017 thinking central bank will support market for ever many stats show never so many people invested on market since years a lot people come since the lockdown this is one biggest bull trap ever the crash might even be bigger than 1929 the price is still higher than in 2019 do you really think the situation is really better than 2019 ? no i can guess, I warned you I hope you have a good reason to keep your positions long but I think that the most reasonable is no positions so wait-and-see now Feel free to share your thought in comment!
SP:SPXShort
by LegoTonix
8
Bitcoin (BTC/USD) Weekly Daily Chart Analysis For Oct 19, 2020Technical Analysis and Outlook Bitcoin's brake-out of a powerful Mean Sup, $11,900 , and rocket it to Major Key Res $12,930 , completing Inner Coin Rally $13,150 and re-retested, topped Outer Coin Rally $13,222 - Marked on 26 Jan 2019. The intermediate end/pause confirmation (TSS proprietary TARC symbol not shown) is in the process - The next Outer Coin Rally is marked as $14,470 with the odds of 80%, while the probability of the price drop stands at 20-40% chance.
COINBASE:BTCUSD
by TradingSig
ACNB Corp isn't just a trade! This should be an investment!Resting right on the 20dma I am anticipating a nice long opportunity if the pivot point holds here to R2. This company makes a great investment due to fundamental analysis and we can see the downside here remains in-wedge most likely at $20 making downside risk very low. HQ is in Gettysburg PA Alan Stock is Chairman and sits on $750k worth of equity in the company. If you investigate the SEC Form 4 there has been a great deal of accumulation from various directors and the C-Suite through Sept15th tp now. Get long folks!
NASDAQ:ACNBLong
by ZenMode
Financials in trouble200sma has been a strong resistance since the March drop. The red circles show 4 times trying to get to it. Placing fibonacci retracement lines shows confluence with a support level (green rectangle from late June --> early July) The 20sma crossed below the 50sma on September 27th. (Bearish signal trend model) Also, if we close at the current price, we are getting a bearish engulfing candle. I would feel comfortable getting in around $22.7, being fundamentally bullish on the sector.
AMEX:XLF
by dorfmanmaster
Russell 2000 Index, Weekly Daily Chart Analysis For Sep 28, 2020Technical Analysis and Outlook As noted before, the small-cap Russell 2000 index is an excellent overall market indicator; The index shows us resuming it the Main/Intermediary uptrends since Sep 24. A buying zone is identified at Mean Sup $1,502 , with the exit at Mean Res $1,553 and Mean Res $1,591, and completed the Inner Index Rally marked at $1,602 respectively, based on one's money management scheme. To continue the rest of the market story, see the 'Weekly Market Review & Analysis For June 29, 2020" page at the usual site.
TVC:RUT
by TradingSig
Facebook (FB): An In-depth Analysis of an Undervalued CompanyIn this post, I’ll be providing an in-depth analysis of Facebook (FB), which was part of FAANG (Facebook, Amazon (AMZN), Apple (AAPL), and Google (GOOGL)), leading the stock market since the financial crash up to 2019, before it was replaced by MAGA (Microsoft (MSFT), Amazon, Google, and Apple). I'll be exploring its business models, financials, weaknesses and threats, the technical analysis of the stock, and my final outlook on the company. Facebook has been under scrutiny for a while, due to issues regarding: fake news scandal regarding the US presidential elections, the violation of data protection laws in Europe, and advertisement boycotts. However, it seems that Facebook is ready for another run as a high-potential growth stock, through its diversification in business models and streams of revenue. Business Models 1. Target Advertisements Based on its tremendous number of users, Facebook has its strength in targeted ads. The ads provided through facebook are optimized through their algorithms, allowing Facebook to receive more money for ads compared to its counterparts. There was a time when Facebook’s ad revenue went up by 50% every year, but growth has slowed down to 10% a year. Nevertheless, based on the recent increase in users, there is huge growth potential as Facebook seeks to advertise in the field of gaming and e-commerce. 2. Increase in users Facebook is another company that benefited from the Corona Virus (COVID-19) pandemic. Its user base increased significantly; FB’s daily active users (DAU) increased by 13%, and monthly active users (MAU) by 12% compared to those of last year. Considering the fact that Facebook’s user growth rate was at a single digit, the increase in number of users demonstrates strong growth potential. With the number of advertisers at 9 million, despite the boycott, Facebook will be able to capitalize on ad demand from mid-small sized companies. 3. Family Applications Facebook owns other family apps such as: Instagram, Facebook Messenger, and Whatsapp. The monthly active people (MAP) for all these applications combined is at 3.14 billion, which makes Facebook the most used social application excluding China. The DAU and MAU for the family applications have also increased by 15.4% and 13.8% each compared to those of last year. 4. E-commerce In August 25, Facebook added a ‘Facebook Shops’ tab on the explore page, allowing users to directly purchase goods. This feature is also available on Instagram as well. This indicates significant growth for Facebook, as it incentivizes users not to open their own shops on Shopify or Amazon, but to open a shop directly on Facebook, which can provide a products page that is optimized for a mobile experience. Considering that the e-commerce landscape is changing to a D2c (directly to customer) format, Facebook and Instagram can easily be the largest market share holder. Also through the use of Facebook messenger, communication between the buyer and the seller is much easy, and live shopping, in the form we have seen in Instagram, is being tested as well. 5. Mobile Payments Whatsapp is launching a service in Brazil, offering payments that could be made to purchase goods, or wire someone money. Consumers can use this service for free, but companies have to pay a 3.99% fee. In the near future, we’ll see people purchase goods directly from Instagram and Facebook, and as such, Facebook has partnered up with e-commerce corporations such as Shopify (SHOP) and Big Commerce (BIGC). 6. Gaming Facbook’s market share in live game streaming has been showing a steady increase, and creating a creator community. They also have strength in the AR/VR gaming industry, as they have acquired the VR headset company oculus in 2014. The growth in revenue of these gaming devices mark a 40% yoy growth. Facebook’s diversification in the gaming industry will also provide them an opportunity for growth. Financials - Facebook generates 98% of its revenue from advertisements - Their ad revenue was less than $20 billion in 2015, but has since grown exponentially to about $70 billion in 2019. - While their gross margin percentage has been declining since 2017 due to traffic acquisition costs, it’s still close to 82%. - Facebook’s cash generation from operations demonstrates phenomenal numbers. - FB is a cash generating machine, and heavily reinvests that capital back into R&D, marketing, and infrastructure. - FB is free cash flow positive, with over $20 billion in 2019. - This means that the company has enough cash on hand to repay creditors and issue dividends to shareholders. - 71.6% comes from Facebook ads, 25.2% comes from Instagram ads - Facebook’s 2020 Q2 ad revenue exceeded expectations. While the cost of advertisement reduced by 21%, with the increase in user traffic, ad revenue increased by 10.2% compared to last year’s quarter, marking $18.32 Billion. - Overall, Facebook demonstrates extremely healthy financials with a mix of steady and exponential growth in their earnings Technical Analysis - To begin with, we can first see that the daily chart is testing the 20 Simple Moving Average (SMA) and the 0.236 Fibonacci retracement resistance - The SMAs are aligned in the order of – 20, 60, and 100 – indicating that the overall trend is an uptrend - Prices have entered, and bounced on the Ichimoku Cloud support - Counting Elliott Waves, we can see that an Impulse Wave Count (12345) has played out since the drop caused by the pandemic, and that we are going through a small phase of correction, potentially counting an Elliott Corrective Wave (ABC). - While a corrective move down to $220 levels around the 0.5 Fibonacci retracement support is possible, it’s not yet probable as significant support levels have not been broken yet. Weakness/Threats - Facebook is exposed to the threat of regulation risks regarding laws of personal information protection. - While Facbook aims to combine all its family apps for synergy, measures will the taken by the government to regulate such efforts, to prevent monopoly. - Apple’s new IOS 14 policy made it difficult for app developers to advertise their product on Facebook, and it’s expected that Facebook’s 2020 Q4 earnings will be affected by it. Final Outlook Overall, Facebook is a big corporation that still has huge growth potential by diversifying its business model. Facebook’s strategy to lock up users within their platform, install shops, and ultimately grow into a payment platform is extremely ambitious yet totally possible. While most people know this company, they are overlooking the growth potential it can achieve, and thus, this stock would be a gem for the long term outlook. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
NASDAQ:METALong
by Michael_Wang_Official
6