Double Down Pick – November 2016
Sector – Technology
Industry – Software & IT Services
Market Cap – Large
Q3 Revenue – $7.01B
Operating Margin – 45%
Net Income – $2.38B
Profit Margin – 34%
Diluted Earnings per Share (EPS) – 0.82
The company’s stock fell sharply after hours upon its earnings release this week. A large part to the stock price drop was the company’s 2017 forecast. Investors became fearful when the company stated the expectation for slower revenue growth in 2017 and the new year will be focused on heavier acquisitions. This means operating expenses will rise causing profit margins to reduce in percentage.
In order for companies to grow acquisitions and advancements need to take place. Companies who focus strongly on this component at a rapid pace are looking clearly at growth opportunities. Some investors are not looking for long-term gains in particular sectors, but hasn’t this company proved their success thus far, and gained the confidence of conscious investors…
The Double Down Stock Pick Is…
Company – Facebook Inc.
Symbol – FB
Purchase Price – $119.83 / 15 Shares
This brings the portfolio share count to 30 at an average share price of $123.00.
There were 1.18 billion daily active users on average for September 2016.