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Bloomberg

Facebook posts record as Megacap Tech Stocks March Higher

(Bloomberg) – Facebook Inc. shares hit a record high on Monday. Megacap internet and technology stocks rebounded on optimism about the strong pace of economic growth. Facebook shares rose 3.4% to close at an all-time high of $ 308.91 as robust economic data on the services industry supported progress in cyclical and growth-oriented industries, fueling S&P 500 index gains for a third day . The communications services and information technology sectors were among the top performing stocks for the day. Alphabet Inc., the parent company of Google, rose 4.2% and also hit a record high. Among other notable tech winners, Amazon.com was up 2.1%, Apple Inc. was up 2.4%, and Microsoft Corp. Value Stocks up 2.8% to an all-time high – amid a strong US vaccine rollout fueling excitement for rapid economic growth. Of the biggest tech names in the market, Amazon is the only one not to break an intraday record in 2021. “These old tech guys have real earning power,” said Arthur Hogan, chief marketing strategist at National Securities, over the phone. “Companies will clearly continue to be a part of our lives, and it is very reasonable to go back to those names.” Facebook is expected to release its first quarter results later this month. Wall Street expects earnings per share and sales to grow more than 30%, according to Bloomberg. Facebook’s recent gains came after CEO Mark Zuckerberg downplayed the risk the social media company posed over an impending change in Apple’s privacy policy. This issue has been seen as a headwind and the reason Facebook warned of “significant uncertainty” in 2021 earlier this year. The company also received a positive mention on Barron’s over the weekend that Facebook was a “growth engine” and that its stock could gain 20% if it returns to the average premium it has traded at over the past five years. Wall Street Optimism analysts remain broadly positive about Facebook’s growth outlook, particularly given a rebound in the digital ad market. “The digital world we’ve grown in. Getting used to the past 12 months (and counting) can be stickier than expected even as Covid restrictions are relaxed,” wrote Nicholas Jones, analyst at Citigroup Inc. Morgan Stanley recently touted Facebook’s valuation and fundamental strength, forecasting “sustained oversized growth.” Of the companies tracked by Bloomberg that cover Facebook, more than 85% recommend buying the stock, while less than 6% have a declining rating. The average price target is $ 336, which is an upside of nearly 9%. “I have no problem being buyers at all-time highs when the stock is at all-time highs for a reason, and I think the optimism about these names is completely justified,” Hogan said. (Updates to the share price are updated continuously.) For more articles like this, visit bloomberg.com. Sign up now to stay up to date with the most trusted business news source. © 2021 Bloomberg LP

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