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UBS: Facebook Stock Is A 'Snowball' That Could Hit $112 (FB)

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UBS analyst Eric J. Sheridan and his team say Facebook's stock — currently trading around $70 — is like a "snowball" that could hit a staggering $112 in the future.

Facebook stock is already up 32% this year and has been trading in a frothy region above the average of analysts' price targets, according to Bloomberg. FB has rallied so quickly that analysts have struggled to upgrade their ever-higher price targets. Facebook stock at $70 has a price/earnings ratio of 114, compared with the average S&P 500 PE ratio of about 16.5, according to Factset. So we're entering the stratosphere of valuations here.

In a note to investors titled "The Snowball Picks Up Speed," UBS' Sheridan, Vishal Patel and Timothy Chiodo point to several factors they think will drive Facebook's stock into triple digits in the near future. (UBS actually has a $90 price target with an "upside scenario" of $112.)

Screen%20shot%202014 03 11%20at%203.31.41%20pmFirst, Sheridan says that Facebook has restricted the "reach" of posts on advertisers' Facebook pages so that just 6% of their followers see any given post. This "is acting as an impetus for greater ad spend as brand advertisers seek to maintain their audience." Facebook has previously denied that it restricts the reach of brands' pages on Facebook. Rather, it believes, the algorithm that controls which posts you see in your news feed is biased toward the posts that your friends also like and toward useful, newsy content.

Second, Facebook did a $100 million ad-buying deal with Publicis Omnicom Group, the giant ad agency holding company.

Third, Sheridan says that despite its reputation, Facebook still remains relatively ad-free:

We believe FB remains undermonetized relative to peers given the time spent on the platform, providing an opportunity for continued strong revenue growth as monetization improves. In particular, Facebook ads exhibit strong pricing power (+92% YoY in Q4) and ROIs remain excellent for FB’s advertising partners, suggesting significant runway for rising ad prices.

Sheridan also believes payment revenue from WhatsApp — users must pay $1 per year after their first year of usage — will help.

UBS has a downside scenario, too, of course. If the snowball melts, the stock would be worth only $55, Sheridan writes.

SEE ALSO: This is the agenda behind Mark Zuckerberg's secret dinner with terrified wireless execs in Barcelona

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35 Things You Can Do Right Away To Start Spending Less Money

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Tired of ending every month in the hole with no idea where your hard-earned money went? It may be time to re-evaluate your spending.

In a recent Reddit thread, users shared their best tips for quickly and easily spending less money. They range from practical food-buying tricks to reframing the way you think about your finances.

We pulled out some the best and highlighted them below.

1. Plan out and cook your own meals. Dining out often is a huge money drain. —MrTimSearle

2. Clean out your fridge and pantry. You'll find good food you didn't know you had. —InsaneRay

3. Buy in bulk the things you would normally buy. You'll get more for your buck. —cjs3

4. Opt for non-canned goods. Fresh produce and dried beans are typically cheaper and healthier than canned items. —BellabitchTheStrange

5. Try the grocery store brand. If you like the taste, stick with it, and you'll save money. —Colonel-Rosa

6. Stop buying microwave dinners. The mark-ups are crazy. You could make better, healthier meals for less. —yawrn

7. Don't buy more groceries than you actually need or can keep. Throwing away food is the same as throwing away money. —nowgetbacktowork

8. Use a slow cooker. Throw in some veggies, beans, and meat, and you'll have lunches and dinners for the whole week. —i-hear-banjos

9. Make your own coffee. Those $2 to $4 coffees add up. —StickleyMan

10. Bring your lunch to work. You'll cut your lunch tab in half or more by making it yourself. —ILikeLampz

11. Stop buying bottled water. Use a glass or refill a bottle with tap water for free. —Cam_Harris

12. Don't go out to drink. Drinks with dinner can add $10 or more a person, and a night at the bar can easily cost $40. —typographicalerr

13. Track your expenses for a month. Using a tool like Mint.com or simply keeping a running log will help you see how much of your income is spent frivolously. —elderbio

14. Set goals. If you have a plan to stock money away in an emergency fund, for example, you'll think twice about spending on superfluous things. Newmoney4me

15. Buy quality items. If you skimp on the important things, you may spend more in the long run. For instance, spending $30 on shoes every six months costs more than spending $60 on a pair that lasts years. —tahlyn

16. Think of your spending in hours instead of dollars. If you make $10 an hour, then that $2 cup of coffee is 12 minutes of your life. You may decide it's not worth it. —Koketa13

17. Before you buy something, ask yourself: What impact is this purchase going to have on my life? That can put an end to impulse spending. —_yertle_the_turtle 

18. Change how often you spend on indulgences. Rather than give them up entirely, limit the frequency. For example, if you go to Starbucks daily, try going weekly, and if you go the movies weekly, try once a month. —stringliterals

19. Put half of your paycheck into savings. It forces you to figure out how to live on less. —ntran2

20. Always pay off your credit card at the end of every month. You avoid paying interest and get in the habit of living within your means. —nova_cat

21. Set up auto transfers on your bills so you're never late. Late fees are a waste. —nowgetbacktowork

22. Get checking account alerts on your phone or opt out of overdraft protection. Otherwise, you'll pay steep fees for overdrafting your account. nowgetbacktowork

23. Spend your money where you spend your time, and cut the rest. If you're a runner, you need good shoes, and if you spend a lot of time in the car, you should invest there. This kind of thinking helps you trim the superficial stuff that does not add value to your life. —GreyFoxNinjaFan

24. Wait at least two days before buying anything over $50. You may no longer want it or forget it altogether. —Newmoney4me

25. Trade cable for Netflix. You'll have access to more TV shows and movies than you can watch for just $7.99 a month. If you like to watch sports, go to the bar or a friend's house. Newmoney4me

26. Ask your Internet provider if it has any promotional rates. You could see your rate drop by as much as $20. —Aerospacing_Out

27. Cancel magazine and newspaper subscriptions you don't read. Many people will let them stack up instead of picking up the phone to cancel. —mrhoopers

28. Compare rates of local electric companies. You may no longer be getting the best deal available. Aerospacing_Out

29. Wear a sweater in the house, and turn down the heat a couple of degrees. Over time, you'll save on electricity. —MrTimSearle

30. Rethink your cell phone plan. Are you paying for more than you use? Switching to Straight Talk or a similar plan could significantly drop your bill. Aerospacing_Out

31. Get car insurance quotes. Companies competing for your business may quote you a lower rate. Aerospacing_Out

32. Look into refinancing your car or home. You could see your payment immediately drop. Aerospacing_Out

33. Frequent the library. Get books, movies, and music for free. —AnnabellBeaverhausen

34. Buy your clothes from the thrift store. Chances are, no one will be able to tell the difference. —Newmoney4me

35. Ride your bike to work. Not only will you save on car or public transportation costs, you'll be healthier. —Colonel-Rosa 

SEE ALSO: Why This Guy Quit His 6-Figure Job And Gave Away Most Of His Possessions

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Woman Files Lawsuit After Bank Allegedly Declares Her Dead

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A 46-year-old Missouri woman has allegedly been trying to convince her bank that she's alive for more than a year, according to the St. Louis Post-Dispatch.

The bank initially declared Kimberly Haman dead for reasons unknown and the credit reporting agency Equifax then reported that false information, she claims. A year later, the mistake still is not fixed, she says.

Haman, a financial services supervisor, has allegedly been denied a credit card and prevented from refinancing her mortgage because credit reports list her as deceased, the Post-Dispatch reports. Haman says she has contacted the bank and credit reporting bureau several times to get the mistake fixed to no avail.

Now, she "is at a complete loss as to what else she can do," according to the lawsuit. Haman is baffled as to what could have led to the alleged error in the first place.

But these mistakes can and do happen. In 2012, an investigation by The Columbus Dispatch revealed how difficult it is to get obvious mistakes corrected on credit reports.

Equifax, the credit reporting agency that Haman is dealing with, has been fined hundreds of thousands of dollars since 2000 for not providing phone help to consumers, according to The Dispatch.

The Dispatch analyzed about 30,000 consumer complaints filed with the Federal Trade Commission and attorneys general in 24 states and found that almost 200 people told the FTC their credit report listed them as dead.

And more than half of the people who filed complaints with the FTC said they couldn't convince the credit reporting agencies to fix the mistakes.

Equifax finally took the error off Haman's credit report after a reporter asked about the lawsuit, a spokeswoman told the Post-Dispatch. But Haman still needs to regain her good credit rating.

We left a message with her bank, Heartland Bank of St. Louis, and will update this post if we hear back.

The Post-Dispatch points out that a Federal Trade Commission study of credit reporting agencies found that 26% of the 1,001 consumers surveyed found at least one "potentially material" mistake on a credit report.

Sylvia Goldsmith, Haman's lawyer, told the Post-Dispatch that these credit bureaus take a "cavalier attitude" toward their responsibilities and that Haman's case is "shining the light" on deficiencies in how credit reporting agencies investigate disputed information.

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