New Trade: Long Facebook (FB) & Short Match (MTCH)

By: ispeculatornew
Date posted: 04.03.2017 (3:00 am) | Write a Comment  (0 Comments)

      Post a Comment

Today I am opening my 11th trade of the year in what has so far been a good year. As is always the case, you can see past 2016 (and previous years) trades here:

http://www.intelligentspeculator.net/livetrades

Let’s start off by looking at the numbers:

TickerNamePricePE RatioPE Next YearReturn YTDSales GrowthAnalyst ratingBook ValueBetaEarningsRevenue/ShareSales 5Y Avg GrowthEPS 5Y Avg Growth
MTCHMatch Group Inc16.3326.7315.35-3.819.84.111.94N/A5/2/20174.86N/AN/A
FBFacebook Inc142.0543.6821.123.7854.164.7120.471.064/26/20179.6550.94156.9

Revenue growth for Facebook unsurprisingly has been very steady over the years while TZOO is not seeing much positive

Long Facebook (FB)

It’s no secret that I’ve been a big believer in Facebook and that continues to be the case. It’s fair to say that Facebook’s core product growth opportunities will start to be more limited given the number of active users and ad growth. Even there though, as Facebook starts to add more video and as offline ad dollars move online, core Facebook will continue to see significant growth. Instagram is just getting started and time spent on Whatsapp and Messenger are incredibly bullish for its future. I continue to think Facebook is one if not the best growth opportunity among the tech stocks that I follow.

Next earnings: April 26th 2017


Short Match Inc (MTCH)

I’d generally say that Match has been an impressive story in recent years and I do expect that trend to continue but in this case, I’m mostly betting that it’s current valuation means it will underperform Facebook in the short term. Match does face a tremendous amount of competition and I’m not convinced that its current valuation is justified given its growth prospects.

Next earnings: May 2nd 2017

Disclaimer: Prior to opening this trade, I am long Facebook (FB)
If you liked this post, you can consider subscribing to our free newsletters here


No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.