Facebook Inc (NASDAQ:FB) is going to announce its quarterly earnings this week. Analysts are investors are bullish on the social media giant given the fact that it has achieved so much in a very short time. In a program on CNBC, an expert showed why Facebook Inc (NASDAQ:FB) could beat expectations and move upside. Facebook Inc (NASDAQ:FB) has a pretty regular growth trend when we draw the market position in the form of graph. It has a steady upside growth when a little bit of extra growth when the stock recently hit $86.
Michael C. Khouw said Facebook Inc (NASDAQ:FB) has not seen multiple expansion. It is currently trading at 80 times higher than its earnings. The social media titan is an expensive stock. Facebook has been trading high above its IPO price since its first day. Facebook Inc (NASDAQ:FB) revenues have outpaced the stock price growth over the course of time when we draw the Facebook stock price and revenues in the form of a graph. Facebook Inc (NASDAQ:FB) has not experienced the multiple expansion as faced by other major tech companies. Khouw thinks that Facebook is going to beat the upside curve and it is a buy.
Facebook Inc (NASDAQ:FB) has beat every other competitor in the social media and tech domains. It has successfully attracted the advertisers to its social media platform. It made the timely move to acquire WhatsApp and Instagram and now, Facebook Inc (NASDAQ:FB)is planning to monetize on these apps.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).