Good morning allegedly squad and in today's video we have to talk about facebook and in this video i'll, explain to you why facebook is a no-brainer at these price levels, and i know what you guys think well. Facebook is trading at an all-time high dome. How can you dare sit here and claim that this is a golden opportunity that this is something we absolutely have to get into watch me? My name is tom nash and i quit my corporate job as a senior financial analyst to break down companies for you. There's one thing you need to know about me: i don't take from anybody.

Thank you so much for staying with me. My name is tom. I used to be a senior financial analyst for over a decade. Now i'm a full-time youtuber.

That's the only thing i do. I bring you stock market news tips and tricks, and i teach you how to look at companies and in today's video i want to show you facebook and why facebook may be one of the best opportunities to actually get an inflation-proof company with a lot of growth And upside potential kind of the best of both worlds, but before we do an important request, don't click, nothing, don't smash, nothing don't buy! Nothing. Just give me your attention for the next five to ten minutes. I'll show you why the bold case for facebook is a no-brainer.

In my opinion, and like everything i say in this video everything is just my opinion, allegedly. If you want to actually take a look at facebook and consider investing, you have to do your own research find it for yourselves, allegedly blah blah mother, effing blah and let's get started right away. So, first of all, let me hit you with some cool numbers: how about gross profit 80? How about ebitda 48, how about net income margin 36? How about annual revenue growth 30? How about ebitda growth year over year 22? How about the revenues 94 billion dollars per year? How about cash 65 billion dollars, including short-term investments? I mean these are the financials out of the heaven of the investment world. I've never seen anything this good.

It makes me drool now somehow the facebook stock only did 17 in the past six months, meaning that it is still fairly unreasonably priced, despite the inflation-proof status that it has, despite the growth opportunities that i'm going to talk to you about in a second, and that Means it's a great investment opportunity for me and in this video i'll, explain why and i'm not the only one who's saying it, i'm going to show you what the people on the pranks are saying that five-star analysts are all in consensus. Nobody is saying that this company is overvalued. I'm going to show you all that, including a dcf. You know we got to do the dcf, i'm going to show you the numbers, the business model.

Essentially, i'm going to show you everything you have to know in order to start your own research to evaluate this company to see if it fits your investment portfolio in your strategy. The bad thing about this company that it's actually way too big for its own size and much like amazon, much like google. It has a lot of issues with regulators specifically antitrust. However, i'm not too concerned about this because, as it happens with amazon and with google, the worst thing that can happen, they pay a little fine.

The governments in the western side of the world, unlike the chinese government, pretty much prove that they have no intent of going aggressive on these companies. The regulators literally have no incentive to go hard at these companies. If anything they'll find them they'll pay a little fine and that's the way of the world. The anti-trust authorities in the western part of the world pretty much gave up.

So i don't think a lot of risk coming out from that and also you have the apple beef. Strangely, it sounds like applebee's, maybe i'm hungry, but in case you haven't heard apple and facebook have the sort of a beef about privacy. So the new versions of apple which you're gon na get are gon na, prompt you to say well. Do you wan na install facebook, because you should know that facebook will gather information about you for advertisements now? To be honest, i'm not too concerned about this, because every data that i saw suggests that 80 to 95 of people will still click on that, regardless of that notification same applies for me, i don't even read these.

I mean i assume that with every app i install, but there will be a few people who get annoyed and not install it, but it's nothing material not enough to change the trajectory of this company, which is going straight to mars. Now, as far as the business model and where the growth opportunities are located, i don't like to look at the obvious stuff. Of course, we all know that facebook is gon na make a ton of dollars from advertising. They already do and they will and they'll make even more as far as retail, pretty much going from brick and mortar to online facebook is the premier location to advertise.

Your business is the cheapest most efficient and the most effective they're going to make a lot of money advertising. Now we all know this. Every single investor on the planet knows that, and that is already priced into the stock price. So, there's no point in me talking about that.

However, there is a second opportunity here which nobody's looking at, even though it's as big as the first one might be even bigger and everybody's, overlooking that facebook is currently monetizing 1.9 billion active daily users from advertising. However, the same people are still on the platform, meaning you have a secondary opportunity to actually monetize it even higher, which means leaning further on the facebook marketplace and the facebook shops to create an ecosystem of this marketplace where everybody is coming to facebook to buy services. Goods peer-to-peer b2b b2c now it already exists. I mean we have amazon, we have ebay.

However, the big advantage that facebook has is that it doesn't need to waste any money whatsoever to drive customers to their stores, while amazon, ebay, shopify at every single platform has to drive traffic actively to their platform facebook. Doesn't they already have 2 billion daily users sitting right there, waiting to be offered good deals, which is an advantage? None of these others, including amazon, doesn't have, and it's only a question of time until facebook sets up that system where this marketplace actually becomes even bigger than the advertising. That's the cherry. On top that people don't understand, the e-commerce ecosystem is going to be way bigger than advertising in 10 years, you're going to be laughing at their advertising income, because this thing is going to be way bigger and somehow based on their multiples.

Based on the dcf, which i'll show you in a second, that thing has not been priced in yet now. What we have right now is a stock price that actually reflects a lot of the negatives, the apple api, the regulatory issues - and it also has the advertising in, but this thing has been completely left out, which means that thing makes it a diamond in the rough. I know it's crazy to say that about facebook, but it is, and i'm not the only one who's saying that look at tip pranks. Let's look at the best analysts on the pranks and see what they have to say about facebook.

I'm going to blow you away before we do that, there's an affiliate link in my description section if you use that to sign up for tip ranks you're going to get a 10 discount on their paid version, which gives you a lot of perks check it out. Also you'll be helping the channel and those of you who are og's on the channel. You know i've been using tip pranks for over a year way before i even had an affiliate link. I like this platform a lot.

Let's take a look at the facebook page on tip ranks on the top side. You'll see the current price 333 dollars right here. You'll see the average analyst price 385, but wait. It gets better check it out.

If you rate the analyst based on five star, only look at what's going on every five star analyst on this list, every five-star analyst thinks the company is undervalued, either by two percent or by 20, 20. 18. 37.8. 20.

14. 25. So, as you can see here clearly these are smart people, ubs wells, fargo, oppenheimer merrill, lynch jeffries deutsche bank. I mean goldman sachs.

These are some of the smartest people that work on wall street. Basically all every single one of them saying that facebook is undervalued. I am not the only one who's saying this: this is a golden opportunity. This is a no-brainer and looking at the dcf of this company.

It only makes it clear: let's look at the ebitda 21 tax rate 28, as of next year, 103 billion dollars in capex investments over the next five years. I added a lot there just to be conservative. We have four percent perpetual growth, 10, very conservative discount rate and at 19.6 ebay, the multiple. Now why 19.6? I can't go for the 25 and just say it's a tech company and just be super super bullish.

Look you see: 24.8 advanced medical equipment and technology. However, i'm going to use a lower tier just to be conservative. Look i'm gon na use 19.6 because it's online services just to be more conservative, check it out. So very conservative right now we're getting 818 billion.

That's for the perpetual growth 1.5 trillion based on the multiple - and this is the part you all been waiting for, so the average share price for me is 424. That's my target. 424 current price is 334, which means it's 27 undervalued and i've been extremely conservative. With this one, in fact, i only use a 20 annual growth for the ebitda for this company, which clearly is an understatement of how fast this thing is growing and will keep growing.

Basically, what you have here is a company with a lot of the downside. Already priced in with all the regulatory issues, with the apple feud, however, none of this e-commerce thing, which i explained to you about, which is a no-brainer to me, is still priced into this company. Now the people on wall street know this. I know this and now you know this now, it's your turn to go research and decide for yourself.

If this is a good investment for you, you have to do your own research. Don't just do it because i said so and by the way, if you want to learn more about inflation-proof companies like this one, because this is definitely an inflation-proof play, there's a whole project, we're running on our patreon page and for channel members we're doing 30 companies In 30 days, all inflation proof we're building an inflation portfolio 30 companies in 30 days. If you want to actually take a look at this and participate, you can check it out on patreon or in the channel members section. It's five bucks per month.

You can join and you can leave after a month, get the 30 companies and just check out if the value isn't there but you'll be helping the channel. So i'd appreciate it. If you can check it out, i never promote my patreon, but i think it's a really good value for you for five bucks a month and that being said, a huge shout out for the existing channel members and the patrons for making this possible. Thank you.

So much we'll see you guys in the next video.