Shares of Facebook, Inc. (Nasdaq: FB) traded to an new all-time of $138.57 today, before falling back, after the social-networking giant announced that it is launching the third incarnation of its "#Snapchat clone" Messenger Day, as described by Zacks. Facebook Messenger Android and iOS users of the app can post pictures and video that will disappear automatically after one day. Zacks states that Messenger Day functions "basically the same way Snapchat’s Stories platform works."
Madeleine Johnson describes a "day" as "specific friends or groups of people." Using days, #Facebook Messenger Day users can decide what content is shared with which friends. Conveniently, media shared within Facebook conversations can be shared directly to a user's day. Filters, effects, and text can also be added to media when sharing.
Facebook adept at 'copying Snachap'
Writing that "Facebook is no stranger to copying Snapchat," Johnson notes Facebook's ownership of both WhatsApp and Instagram, both of which have features comparable to Snap, Inc.'s (NYSE: SNAP) Snapchat. Citing Facebook's ability to copy Snapchat's most popular features, the Zacks writer states that SNAP stock investors should be "rightfully worried" if the newly public company can grow the number of users who chose its service in the face of such stiff, and experienced, competition.
Since coming public in May 2012, #FB stock has returned just over 260 percent, compared with a gain of near 110 percent for the Nasdaq Composite Index. In its first full week of trading, SNAP stock had traded as high as 70 percent above its $17 IPO price. Currently, SNAP stock is trading at $22.88, up close to 35 percent for IPO investors. Using last Thursday's close as a starting point, SNAP stock has lost 6.6 percent, while FB stock has gained 0.65 percent.
Earnings, revenue growth behind FB stock run
The reason that FB stock has performed so well in the years since its IPO is because it has successfully grown not only sales, but also profits. Each quarter, Facebook management has consistently reported double and triple-digit year-over-year revenue and profit numbers. Just over the past 90-day period, the Wall Street analyst consensus view for FB EPS has been raised, from $5.21 to $5.42 in 2017, and from $6.55 to $6.69 in 2018. Over the next five years, FB EPS is expected to grow at a annual rate of 23.5 percent.
Facebook last reported carrying zero debt, and holding a cash position of close to $30 billion. Trailing-twelve month revenue is $27.64 billion. Facebook management, led by Chief Executive Officer Mark Zuckerberg, delivered investors a 19.76 percent return on equity, a 45.20 percent operating margin, and a 36.97 percent profit margin with the firm's most recent results. Facebook also boasts a surprisingly reasonable forward price-to-earnings ratio of 20.57.