If you compare the beginning and end of this month, you can clearly see Facebook’s (FB) stock surpassed already. In early May, it showed that the price was worth $300, but it slowly surged. Today, it is staying at $327.
There is a dispute over Facebook. Is it a technology company, or rather a media company? This debate about Facebook’s industry has been cast in political and legal terms. If Facebook is a technology company, then its stock is very undervalued, if Facebook is media, then it is too much overvalued.
This debate over classification matters, because an investor is ready to pay for a stock that depends on the industry classification and on its valuation multiplicity. When a firm changes one industry to another, it becomes less connected with companies in the previous industry and more correlated with companies in a new industry. Changes have nothing in common with the company’s fundamentals.
Editor in Chief.
Living in the era of dynamic tech change Alex decided to stay tuned in changes that make any person find comfort and adapt to new devices. Furthermore, gaming became his passion for spending leisure time with his close ones. Although, he has a degree in Business Administration (majoring in Finance) writing for technology and as well as finance has been one of the precious aspects of his life