1. Log on to finance.yahoo.com and enter the ticker symbol “FB” in the Search bo
ID: 2789537 • Letter: 1
Question
1. Log on to finance.yahoo.com and enter the ticker symbol “FB” in the Search box to find information about Facebook.
A) Click on company Profile. What is the company’s main line of business?
B) Now go to Statistics. How many shares of the company's stock are outstanding? What is the total market value of the firm (Market Cap)? What were its profits (EPS) in the most recent fiscal year?
C) Look up Holders of the company's shares. You will see 3 tabs (Major Holders, Insider Roster, and Insider Transaction). Under the tab Major Holders (default tab), scroll down for a list of Direct Holders. Do you see Mark Zuckerberg listed there? Now click on the Insider Transactions tab. Do you see his name listed there? Do you know why he is listed in one tab but not the other?
D) Now go to Analysts. Look at the right side of your screen.
What is the Recommendation Rating for the stock? [For your information, a Buy rating means the stock is considered by the analysts to be a good investment now; its price will increase in the future. A Sell rating means the opposite: its price will decline and investors holding the stocks should sell it now]
According to the analysts, what is the average price target (i.e., the predicted stock price) of FB? How does that compare to the price at which the stock is currently trading?
2. Repeat the whole process with another company of your choice.
Explanation / Answer
Question 1: FACEBOOK
(a) Company Profile: Internet Information Providers in technology sector
(b) Oustanding shares: 2.38 Billion
Total market Cap: 519.38 Billion
EPS of the most recent fiscal year: $4.47
(c) No, We do not see Mark Zuckerberg listed as Direct Holders
Yes, We find Mark Zuckerberg's name on Insider transactions tab. He is listed here becuase he is the CEO and hence has insider transaction , but not a direct shareholder
(d) It is a Buy rating. The average price target is 206.63. This is 15.6% higher than the current price of $178.74
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