Tech stocks have been crashing lately, and there are many deals out there for opportunistic investors who aren’t afraid of the recent bear markets. Facebook, Inc. (NASDAQ:FB) has declined by 20% over the past three months and it is now at a new 52-week low. In fact, the last time the stock was this low was back in January of 2017.
Its share price was down nearly 6% on Monday despite no negative news coming out about the company. Instead, it seems investors have become concerned lately around trade and geopolitical issues. The tech industry depends on China for much of its production and a trade war could be disastrous for many NASDAQ-based stocks.
While the Trump administration may take a tough stance on trade, we’ve seen in the past how his negotiating tactics can sometimes exaggerate how dire a situation is. For a long time, there was concern that a NAFTA replacement would not get done or that it would not involve Canada, and despite a lot of posturing, that ultimately ended with a deal.
I wouldn’t be pushing the panic button, and instead, I’d be looking for the buy button as opportunities to buy this low might not come for a while.
Facebook’s stock shouldn’t be negatively impacted by these developments as it still is the world’s go-to website for anything to do with social media, and that’s worth a lot. For all of its controversies, Facebook is still irreplaceable and it isn’t going anywhere soon. With the stock trading at around 20 times earnings, this is a bargain buy for investors.
