Facebook the most undervalued tech stock?

After the 2018 data scandal, Facebook’s stock plunged 37% from its high of $220. I started to get some equity exposure around the $130 range. The thesis was very simple. They are one of the top 5 most profitable and fastest-growing tech companies. Data privacy issues have certainly led to a decline in consumer trust. That said, the network effect is super sticky when you have 2.5 billion monthly active users. Additionally, the features of Facebook and Instagram have continually transformed to protect against the threat of new competition. After a few quarters of good earnings reports, Facebook’s stock returned to its previous highs. However, in the midst of the Coronavirus, the Facebook stock returned to the low levels it had seen back in 2018. I decided to add even more exposure. Facebook has been the largest holding in my portfolio since Mid 2020.

Here are the reasons why:

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