by Michael Tarsala
Piper Jaffray analysts think that Facebook (FB) may be one of the best large-cap tech stocks to own and are trading at a deep discount to future growth.
It’s tough to call a bottom on the stock, the analysts acknowledge. Investors may continue to sell ahead of the company’s biggest stock lockup expiration on Nov. 15. Afterward, however, they think that shares are unlikely to be impacted.
They still think the stock has a bright future 12 months out.
It’s not a particular price that will make a Facebook investment attractive, says Barry Randall, manager of the Crabtree Technology investment model. Rather, it will be proof that the company can sustain strong double-digit revenue growth. The story — and perhaps the stock trajectory — could change meaningfully once that happens, he says.
That could conceivably happen as soon as its next earnings report.
“I am not a Facebook (FB) hater,” Randall says. “I do not think that Facebook is a MySpace-like fad. I see it as a substantive company with a real working business model.”
If you would like to learn more about the Crabtree Technology model or others that specialize in the technology sector, call Covestor at 866-825-3005 X 703, from 9 to 5, Monday through Friday, Eastern. That’s a direct line to our New York office.
At Covestor, we can set you up with your own separately managed account (your money is separate from everyone else’s) – all with very low investment minimums.
