Facebook’s price-earnings ratio near record low ahead of fourth-quarter report

A recent drop in Facebook Inc’s stock has left the online social network trading at earnings multiples near record lows as it prepares to hand investors its fourth-quarter report.

Along with fellow technology leaders Netflix Inc, Apple Inc, Alphabet Inc and Amazon.com Inc, Facebook has been among Wall Street’s top stocks in recent years, but a market selloff sparked by plummeting oil prices has pulled it down 7 percent so far in 2016.

In its fourth-quarter report due after the bell on Wednesday, the digital advertising heavyweight is likely to post revenue up 39 percent and net income up 35 percent, in line with growth rates in recent quarters, according to the average estimate of analysts tracked by Thomson Reuters.

P/E ratio is forecasted to go down every year, which is not good news to investors. However, there is still a strong recommendation to buy

http://www.nasdaq.com/symbol/fb/pe-ratio

 

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