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    Your Safe, Low-Cost Way to Play Facebook Stock This Summer

    By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades -

    In just the past two weeks, Facebook Inc. stock has fallen from $242 down to $216, only to climb back again to $245. It's under a microscope right now, with around 800 companies - including giants like Coca-Cola Co., Hershey Co., Ford Motor Co., and Unilever NV - having "paused" their extensive ad buys.

    The world's biggest social media site hosts around 2.6 billion active monthly users, so it's the ballpark all advertisers want to play in. Together, they paid Facebook almost $70 billion to do just that in 2019.

    But those advertisers (or, more to the point, those advertisers' everyday customers) want Facebook to do more to police the content that appears on its site. So this "pause" in ad buying is really a de facto boycott.

    Now, however you feel about Facebook's politics, if you're an investor, "boycott" is a scary word.

    Advertising is Facebook's bread and butter, and when that all-important revenue stream is threatened, for any reason, all kinds of questions come up about Facebook's near-term value as a buy-and-hold stock. As my colleague, D.R. Barton, Jr., told you last week, though, there's still good reason to bet on FB for the long haul.

    And as I'll show you today, the best way to make money on Facebook right now is to trade it.

    The smart move is "renting" Facebook for a couple of cents on the dollar; that'll slash our risk and potentially put a cool $1,000 in our pockets toward the end of the summer.

    There's only a short time frame for us to set up this trade. Here's how it works...

Article Index

Your Safe, Low-Cost Way to Play Facebook Stock This Summer

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades -

In just the past two weeks, Facebook Inc. stock has fallen from $242 down to $216, only to climb back again to $245. It's under a microscope right now, with around 800 companies - including giants like Coca-Cola Co., Hershey Co., Ford Motor Co., and Unilever NV - having "paused" their extensive ad buys.

The world's biggest social media site hosts around 2.6 billion active monthly users, so it's the ballpark all advertisers want to play in. Together, they paid Facebook almost $70 billion to do just that in 2019.

But those advertisers (or, more to the point, those advertisers' everyday customers) want Facebook to do more to police the content that appears on its site. So this "pause" in ad buying is really a de facto boycott.

Now, however you feel about Facebook's politics, if you're an investor, "boycott" is a scary word.

Advertising is Facebook's bread and butter, and when that all-important revenue stream is threatened, for any reason, all kinds of questions come up about Facebook's near-term value as a buy-and-hold stock. As my colleague, D.R. Barton, Jr., told you last week, though, there's still good reason to bet on FB for the long haul.

And as I'll show you today, the best way to make money on Facebook right now is to trade it.

The smart move is "renting" Facebook for a couple of cents on the dollar; that'll slash our risk and potentially put a cool $1,000 in our pockets toward the end of the summer.

There's only a short time frame for us to set up this trade. Here's how it works...

Facebook Advertisers Boycott, and You Make More Money

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

facebook on dark screen

Social media giant Facebook Inc. is in hot water again.

This time, people are angry at the company's apparent refusal to take down hate speech, calls for violence, and other distasteful content from the network.

So far, more than 160 companies have signed up for the "Stop Hate for Profit" campaign, pledging to "pause" advertising on Facebook.

We're talking about big names like Ben & Jerry's, Coca-Cola, Hershey's, Honda, Levi Strauss, Starbucks, The North Face, Unilever, Verizon, and many more. All of these companies will not be buying Facebook ads in July, and some are going even further.

Since almost all of Facebook's $70 billion in revenue comes from advertising, this is hitting CEO and founder Mark Zuckerberg right where it hurts.

Or at least, that's what we're being told.

As the advertising boycott really took off last Friday, Facebook stock dropped 8.32%. Zuckerberg himself lost about $7 billion in wealth because of it. Stock markets as a whole went down partly because of this.

But don't believe the hype. Facebook will not only survive this scandal; it will grow even bigger.

In fact, this is a great opportunity to buy the dip. Here's why...

A Double-Your-Money Tech Titan with Low Risk and Big Upside

By , Executive Editor, Money Morning -

That's a line from "Contrarian Investing," the 1998 book I co-authored with a New York money manager. And it means that against-the-crowd investors like me like to find stocks that have been beaten down from their highs.

Most investors don't think that way. They know of the mantra "Buy low and sell high" - but when it comes time to actually buy a beaten-down stock, emotion overcomes intellect, and they run to the sidelines. They "see" the move as too risky to make.

I'm here to tell you that they're wrong.

As my co-author and I found out in the process of writing our book, beaten-down stocks - as a group - are actually lower-risk/higher-upside investments than their high-flying alternatives.

And in the face of the coronavirus-pandemic market, low-risk investments are the ones you should be looking for.

That's what we're going to deliver today - in part.

We're bringing you a low-risk stock - with a bonus. This is a stock that:

  • Is trading at a discount - down nearly a quarter from its peak.
  • Has a hefty "margin of safety" - with a ton of cash and no debt.
  • Has a big upside - the stock should easily double by 2025, a great return for a stock with lower downside risk.

Let's run through each of these - and you'll see why I'm so revved up about a stock that - on its face - seems so obvious.

Yeah, a "hidden in plain sight" wealth play that's so obvious most folks will ignore it... Full Story

Facebook Could Be a Boon for These Cybersecurity Stocks

By , Money Morning -

It's been a rough year for Facebook Inc. (NASDAQ: FB).

Trust in the social media giant has plunged in the wake of two major scandals surrounding cybersecurity and sensitive consumer information.

A recent hack exposed data of nearly 30 million people, while the firm faced considerable criticism in the wake of the Cambridge Analytica scandal from the 2016 election.

Since January, Facebook stock has fallen over 18%.

However, it looks like the tech giant is looking to turn over a new leaf.

What Yogi Berra Can Tell Us About Zuckerberg’s Facebook Plans

By , Executive Editor, Money Morning -

Facebook

New York Yankees legend Yogi Berra will go down in history as one of the greatest catchers who ever played the game.

He captured 10 World Series titles as a player, was a three-time American League MVP, and won pennants in both leagues as a manager, too.

But his Hall of Fame career isn't all that this baseball icon, who passed away last year, is remembered for.

Many also remember him for his "Yogi-isms," his short and often confusing words of wisdom or funny sayings that mashed a few different ideas together.

These include "It's like déjà vu all over again," "You can observe a lot by just watching," and "Even Napoleon had his Watergate."

These aren't just funny one-liners.

They have real-life applications.

In fact, one of my favorite Yogi-isms can be applied to one of my absolute favorite tech stocks right now.

Let me show you...

Buy This "New Money" Stock and Get "Old Money" Rich

By , Executive Editor, Money Morning -

stock

I got my introduction to the world of wealth management while working for Gannett Newspapers in Rochester, New York. I've watched wealthy investors constantly ever since, because what I saw at the time was absolutely fascinating.

You see, Rochester has more than its fair share of "old money" families - that's largely thanks to local companies like Eastman Kodak, Xerox, Bausch & Lomb and, much later, Paychex. These companies grew so large that they made huge swathes of the population filthy, stinkin' rich.

Now, certainly, none of these families obtained their fabulous wealth by simply being in the same ZIP code as these successful companies.

Instead, as I came to find out, they travelled a path of sorts, using a "wealthy investor" strategy with a shared mindset that led to more frequent success, greater gains, and more substantial wealth over the long term.

And that is precisely what I'm going to talk to you about today. And I'll go one better - I'll give you a "new money" stock that can help make you "old money" rich.

Attaining this kind of wealth is a lot easier than you might think...