FACEBOOK to make you rich?

UPDATE: SEPT. 12, 2013 - I don't want to say I told you so, but the stock has gained over $7/share in about a month and a few days.

Current price 45.00 

Facebook and China

Today Facebook Inc (NASDAQ:FB) COO Sheryl Sandberg met with China’s internet regulator Cai Mingzhao. That meeting, which could be the beginning of a relationship between Facebook and the Asian giant, was one of the reasons for the push upward in price today. Facebook’s social network isbanned in China. As the world’s biggest market and one of the fastest growing groups of tech consumers, China is a target for Facebook investors.

Today’s meeting was likely not about opening China to Facebook Inc (NASDAQ:FB). It was probably about encouraging Chinese companies to advertise on Facebook. That revenue in and of itself could be extremely valuable to Facebook, but it needs China to relax its stand on Western social networks in order to make that happen.

If Facebook Inc (NASDAQ:FB) can develop some sort of relationship with the Chinese government, it is hoped that it might lead to some kind of limited presence for the company in the country. Facebook wants to get its foot in the door so that it can get into the country and when this happens, not if it happens,  prepare for early retirement.

Recommendation Trends

Current Month Last Month Two Months Ago Three Months Ago Strong Buy 11 12 12 10 Buy 16 15 13 11 Hold 11 11 10 13 Underperform 1 1 1 1 Sell 0 1 1 1

Data provided by Thomson/First Call

I will keep an eye out for this.

JULY 3O, 2013

Facebook Inc. (FB) rose to the highest price ($37.66) as of 1 pm today July 30th, 2013 since the day after its initial public offering.




The gain is a turnaround for Facebook, whose stock slumped as low as $17.73 in September after an IPO of $38 per share.

The stock jumped to the highest close since May 18, 2012 -- last Thursday and is still climbing. The shares have advanced 33% this year, compared with an 18 percent increase in the Standard & Poor's 500 Index. After Monday's rally, the Menlo Park, California-based company was now trading at about 154 times earnings. That's a greater price-to-earnings ratio than all but five companies in the S&P 500, according to data compiled by Bloomberg. A higher multiple can signal that investors think the company may report stronger earnings growth in the future. Zuckerberg saw Facebook’s stock price soar 30% last Thursday, bringing the stock price close to its IPO price of $38 in May 2012. The hoodie wearing CEO saw his net worth jump $3.7 billion after Facebook revealed its second-quarter earnings. Look what happenned last thursday. Facebook (NASDAQ:FB) had its price objective raised by JPMorgan Cazenove from $35.00 to $44.00 in a research report released on Thursday morning. Analysts at Cowen and Company raised their price target on shares of Facebook from $21.00 to $29.00 Separately, analysts at Telsey Advisory Group raised their price target on shares of Facebook from $38.00 to $41.00 Finally, analysts at UBS AG raised their price target on shares of Facebook from $30.00 to $36.00 The stock had a consensus rating of Buy and a consensus target price of $37.08. as of last Thursday. This is the quarter that tells us that Facebook is here to stay. My recommendation, is a buy.

Current stock price