Facebook Inc (NASDAQ:FB)‘s stock has seen a tremendous rise since its April Lows. Even after the the company’s exceptional second quarter results, TheStreet in a post maintained a ‘Hold’ on Facebook Inc (NASDAQ:FB)’s stock. TheStreet acknowledged that Facebook Inc (NASDAQ:FB) has demonstrated strength in multiple areas, but the company’s stock, according to them trades at ‘premium’ valuation.
The post enumerated that Facebook Inc (NASDAQ:FB) had an impressive revenue growth in the second quarter of 60.5% year over year, while the industry average growth for the same period amounted to 19.9%. Another metric where Facebook Inc (NASDAQ:FB) excelled was its debt to equity ratio, which is at 0.02 and the company maintains a quick ratio of 12.48. Although Facebook Inc (NASDAQ:FB)’s net operating cash flow increased to 1.43%, its cash flow growth rate is still way below the industry average of 17.67%. TheStreet believes that there is little evidence to justify that Facebook Inc (NASDAQ:FB)’s stock will have a significant up or down move in the near future, hence maintaining the ‘Hold’ rating.
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