SumZero's CEO Divya Narendra recently submitted a report on Facebook (FB:US) to SumZero's database. Facebook's stock is down close to 10% this week due to intense public scrutiny over the company's handling of private data. Divya was invited to share his thoughts on CNBC with Scott Wapner here. Below is a brief sample from the report:
Elevator Pitch: Unique opportunity to buy FB for <20x earnings despite 50% growth last year and an embedded portfolio of VC-style free options.
FB is one of the most widely watched stocks in the world, which is no surprise given its ~$525BN market cap. But as is often the case, investors neglect large opportunities that present themselves in plain sight. As someone who has owned FB shares since 2008, you might wonder why I'd post a long recommendation on FB now, nearly 6 years after the company IPO'd. In short, despite FB's stock price nearly quintupling since its public debut, its shares have failed to keep up with the earnings power of the business and reflect intrinsic value. If you’re concerned that you missed the party, fear not, there is plenty of upside left. As it stands, investors can buy FB today for ~20x 2018 sellside consensus earnings (a record low) and even less considering the fact that FB has metronomically beaten consensus sellside targets, quarter after quarter. To put this in perspective, FB trades at an earnings multiple discount to the S&P 500, despite the S&P having a fraction of the growth.
Apply to SumZero Buyside here to view the full FB:US report.