INVESTORPLACE - Sep 11 - Match Group will no longer enjoy the absence of competition in the online dating market. But users might express skepticism over Facebook Dating safety. On July 24 Facebook agreed to a $5B settlement with the Federal Trade Commission. This amount represents 9% of its 2018 revenue. The company generated revenue of $16.9B in Q2 2019 alone. Investors who forecast a ~20% CAGR in a 5-year DCF growth exit model will arrive at a fair value of $196-$273 for Facebook stock. At a 9.5% discount rate, the implied fair value is $228. Per Simplywall.St, FB stock is ~20% discounted from its future cash flow and has plenty of upside for shareholders ahead. Facebook continues to attract healthy advertising spending. It faces no immediate competition from other social networking sites, either. Investors will do well holding or accumulating FB stock at current levels.
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