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Valuentum Commentary
Oct 26, 2021
Facebook’s Third-Quarter 2021 Results Better Than Feared
Image: Facebook continues to put up impressive levels of free cash flow generation. We remain huge fans of the stock. Image Source: Facebook. Facebook showed what it means to have a wide economic moat when it reported its third-quarter 2021 results. Robust revenue growth in the face of disruptive Apple iOS 14 privacy changes, impressive operating-income expansion in the face of considerable expense growth to build out the ‘metaverse,’ and cultural resilience in the face on a slew of media attacks on its business practices reveal that Facebook may be near-invincible. We’re huge fans of Facebook’s free cash flow generation capacity and its attractive net-cash-rich balance sheet, and we expect more good things to come from this top-weighted idea in the Best Ideas Newsletter portfolio. A huge new buyback authorization that we thought was in the cards in the wake of share-price weakness has arrived, and we love that Facebook is scooping up its undervalued stock. We’re maintaining our 10 rating on the VBI and $515 fair value estimate for shares. Latest News and Media The High Yield Dividend Newsletter, Best Ideas
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