Facebook’s (NASDAQ:FB) stock price rally from March laws has been absolutely incredible. This technology stock has continued to grow its share price and market weighting despite serious concerns around lower corporate spending, most of which were previously centered on the idea that coronavirus-related corporate spending declines would impact Facebook’s bottom line. It seems as though these concerns have since dissipated.
Concerns around lower levels of advertising spending from a group of hundreds of brands that have boycotted the Facebook platform is the latest headwind facing this stock. It seems as though most investors have already done the math and have calculated the impact of such a boycott to Facebook’s bottom line as immaterial. While I do see this as being the case, the amount of media attention this boycott has had on Facebook’s brand remains a thorn in the side of management.
Facebook has recently agreed to meet with policy critics amid this boycott-related pressure to remove hate speech and prevent foreign political interference on its platform. I do think Facebook will capitulate, to some degree, to the concerns placed before management, and will continue to work toward improving its platform monitoring moving forward. As with any investment, taking a broader look at the company’s portfolio of products and income streams, we see a company with an excellent brand and extremely stable and growing cash flows, great indicators for long-term growth investors.
Invest wisely, my friends.
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