By
Chimamanda U. Martha
April 12th, 2024
Yesterday Facebook stock was close to hitting its ATH. Today FB shares are slightly down, however, experts believe that the price may increase soon.
The investment advisory company Diamond Hill Capital in its Q1 Reports shows that Small Cap Fund underperformed by -36.17%. The Russell 2000 Index also fell below expectations returning – 30.61% in the same period. The firm which lists high performing investment assets recently announced that Facebook Inc (NASDAQ: FB) shares are among the stock to watch.
In a letter to its subscribers, the company maintained that few assets would deliver returns as those it projects for investors. It named Facebook, the social media giant as one of them. Today, Facebook shares are 0.38% down, trading at $237.76.
Facebook Is Ahead of Competition, Shares Worth Investing
According to Diamond Hill Facebook outperformed its competitors reporting increase in usage of its platform during the COVID-19 pandemic. This is understandable considering the global lockdown due to coronavirus. The report from Diamond Hill Capital said that this underscores the value of the company as a utility for social interaction especially during such restrictions as imposed by governments during the plague. The experts wrote:
“While we expect near- term fundamentals to face headwinds, we continue to expect advertisers to increase their Facebook advertising budget due to the growing usage of the company’s services globally.”
There was a spike in the number of bullish hedge fund positions on the company in the first quarter of 2020. This is an 8% increase from the previous quarter. The implication of this is that more hedge fund managers are bullish on the company’s stocks pointing a definite growth potential.
Facebook stock has been ranked number 3 among 30 most popular stocks. The top 10 premium stocks among these managers return 185% since Q4 of 2014. These outperformed the S&P 500 Index ETFs by 109%. Unbelievable as this may sound, investing in these top stocks would have doubled the investors’ capital within this period.
More Stocks on Watchlist
A recent pitch by fund managers such as Diamond Hill Capital stated that all these top stocks had positive indices in 2020. The reports alluded to the belief that aside from Facebook other stocks to watch are electric vehicle companies and the energy storage market. This considered the declining lithium prices in the wake of the coronavirus pandemic.
An interview conducted by the company with fund managers also shows that healthcare provider stocks are among those to watch during this pandemic. The company concluded that its best call in 2020 is short the market at 3150 for the S&P 500.
Though the general market has seen some rebound, the trend is to jump in with the hope of making a fortune. However it is important to have a long-term view of a company’s sustainability before making an investment.
According to Yahoo Finance, Wall Street giant Morgan Stanley (NYSE: MS) recently had their research team publish the names of companies that will likely face persistent challenges in view of the coronavirus pandemic. Savvy investors would do well to research before investing.