Is Facebook Stock a Buy?
It's been a wild few years for Facebook (NASDAQ: FB). The world's social media leader has been at the center of multiple controversies, including political intrigue (both parties in the U.S. have their fixations with the platform), data privacy concerns (regarding Facebook's use of personal data), critique of its effect on society at large (the Netflix documentary The Social Dilemma highlights some of the dangers of social networking), and most recently a lawsuit from the Federal Trade Commission (FTC) alleging Facebook has routinely undertaken illegal anticompetitive activity.
Throw in a pandemic that briefly sent digital advertising into a tailspin in 2020, and it's incredible Facebook stock is up some 50% over the last trailing three-year stretch. Who in their right mind would buy Facebook stock right now? I would. And there are 56 billion reasons why.
Facebook stock was a screaming deal during the depths of the pandemic in March 2020 and the months following, but the situation has gotten more complex since then. And though Facebook is back in growth mode -- revenue and net income grew a respective 22% and 29% year over year in the third quarter of 2020 -- shares currently trade for 31 times trailing 12-month earnings.
Source Fool.com
