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Should Investors Buy the Post-Earnings Dip in Facebook?

Published 05/14/2021, 11:35 AM
Updated 05/14/2021, 12:30 PM
© Reuters.  Should Investors Buy the Post-Earnings Dip in Facebook?

Facebook (NASDAQ:FB) continues to broaden its horizons by diversifying its revenue streams across social media, virtual reality, online transactions and possibly even its own cryptocurrency at some point in the future. Though the stock has gyrated this month, top analysts are bullish on the name in-part due to its diversified revenue streams. So, is the stock an attractive buy now in the wake of a post-earnings report dip? Read on to find out.Facebook (FB) was trading at $329.51 on April 29. But the stock retreated to $315.02 in early May, popped back up in the days that followed and then again declined, this time falling to $305.00.

FB is intriguing as a prospective investment because the company generates cash from several revenue sources. In addition to revenue stemming from its platform advertisements, FB also makes money through Oculus VR (virtual reality technology), WhatsApp, LiveRail, Onavo, PrivateCore, the uber-popular Instagram platform, and additional subsidiaries and e-commerce initiatives.

So given its diverse revenue channels, the question is when and to what degree will FB bounce back following its recent decline? Let’s find out.

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