Best Stocks to Buy Under Trump: Facebook (FB)
Facebook Inc (NASDAQ:FB) was recently dinged after its Q3 earnings report at the start of November. But investors should see this dip as a rare opportunity to buy in, because longer-term, FB stock seems to do nothing but go up.
And seeing as Donald Trump loves social media and his unique brand of half-truths and inflammatory rhetoric are tailor-made for social media, you can be sure we are entering a golden age for Facebook in the coming year. After all, what is the news these days instead of anchors simply reading from Donald Trump’s Twitter feed or Facebook page?
Unlike the unprofitable Twitter Inc (NYSE:TWTR), however, Facebook stock is killing it on both the top and the bottom line. The stock is up by about 230% since its 2012 initial public offering — almost four times the return of the S&P 500 in the same period. And in the past 12 months, FB is up 30% while the S&P has gained 20%.
Many investors think the stock is too pricey or too overhyped, but that’s how momentum stocks work — particularly in tech, and particularly when you’re a company like Facebook that is wildly profitable and full of future potential. But the forward price-to-earnings ratio of the S&P 500 as a group is about 18 right now, and the forward P/E of Facebook is just 23 — hardly outrageous.
If you’re waiting for Facebook to crash, you’ll likely be waiting for a while. So don’t delay — buy the brief pullback before this stock continues to rally in 2017. As Donald Trump’s supporters prefer to get their “facts” from social media, you can be sure FB stock will be doing just fine no matter what mayhem we see in reality.