Question

With an overall assessment of how different stakeholders in the firm (Facebook) view the financial performance of the company. Ultimately, would a smart investor consider investing in Facebook based on its financial performance, or are there stronger options within the industry?

Answer 1

Various stakeholders view the performance of this company in different perspective as they want their interest to be protected such as shareholders are very happy with the performance of the company because they have been getting high return on their investment as the company has been continuously delivering a higher CAGR.

the government has been able to generate enough amount of taxes from Facebook and the other stakeholders such as suppliers and creditors are also secured of their position as this company is performing very good.

Smart investor would not invest in the Facebook at this point of time even if its books of account is highly strong because share has been trading at all time high and there is very less potential of upside because there is a pandemic also going on, and the consumption related pattern has also changed substantially and Facebook is having a large number of competitors because it does not have that competitive moat as it used to have earlier, so as an investor I would be highly sceptical to invest into the shares of Facebook