Facebook (NASDAQ:) inventory has just lately seen detrimental headlines, particularly following the worldwide outage that affected its apps in addition to the testimony by the whistleblower who introduced consideration to the social media big’s priorities that put “development over security.” As a consequence, prior to now month, FB shares are down about 14%. By comparability, the index misplaced about 4.5%.
In early September, Facebook inventory hit an all-time excessive of $384.33. The 52-week vary for the shares has been $244.61 – $384.33. Yet, regardless of the latest decline, FB inventory remains to be up near 19% in 2021. With a market capitalization of $920.2 billion, it is likely one of the most necessary tech names on Wall Street.
Many traders now wonder if it is all gloom and doom for the corporate. Or, is Facebook nonetheless a stable purchase? Among 53 analysts polled through Investing.com, the inventory has an ‘outperform’ ranking.
FB shares have a 12-month worth goal of $411.81, implying a rise of about 30% from present ranges. The 12-month worth vary at the moment stands between $147 and $500.
In different phrases, Wall Street regards present detrimental news as probably being transitionary. Investors who agree with this view may wish to think about shopping for the dips in FB inventory.
However, not everybody may concur. Therefore, for traders who’re nonetheless involved concerning the near-term prospects, we introduce two tech ETFs with little FB publicity. This signifies that strikes in Facebook shares alone are usually not more likely to have a huge impact within the worth of those funds.
1. Invesco S&P 500 Equal Weight Communication Services ETF
Current Price: $37.93
52-Week Range: $25.50 – $40.00
Dividend Yield: 0.97%
Expense Ratio: 0.40% per 12 months
The Invesco S&P 500 Equal Weight Communication Svc (NYSE:) invests in shares within the Global Industry Classification Standard (GICS) communication companies sector inside the index. Earlier within the 12 months, we mentioned the sectors that comprise the GICS (, , and ).
In this classification, communication companies corporations are outlined as those “that provide content, such as information, advertising, entertainment, news and social media, delivered on networks, primarily through internet, broadband, cellular, cable and land lines.”
EWCO, which at the moment has 27 holdings, began buying and selling in July 2018. The main 10 names make up about 47% of web belongings of $42 million. Facebook inventory just isn’t a kind of prime shares as its weighting within the fund stands at 3.92%.
Among the highest names are Live Nation Entertainment (NYSE:), which promotes stay leisure occasions, video game developer Take-Two Interactive Software (NASDAQ:), streaming pioneer Netflix (NASDAQ:), promoting and PR company Omnicom (NYSE:), and telecom group Lumen Technologies (NYSE:).
The fund returned greater than 37% prior to now 12 months and 20.5% to date in 2021. Yet, prior to now month, EWCO is down 0.5%.
By comparability, the Communication Services Select Sector SPDR® Fund (NYSE:) misplaced about 5.4% prior to now month. Readers is perhaps to know that weighting of FB inventory in XLC at the moment stands at 20.90%. In truth, it holds the highest spot among the many holdings in that fund.
Buy-and-hold traders who’re thinking about EWCO may see a possible decline towards $36.5-$37 as a greater entry level into the ETF.
2. First Trust NASDAQ-100 Equal Weighted Index Fund
Current Price: $110.90
52-Week Range: $83.94 – $117.93
Dividend Yield: 0.24%
Expense Ratio: 0.58% per 12 months
Readers who wish to put money into the NASDAQ 100 index by an equal-weighted fund can select from two ETFs. First Trust NASDAQ-100 Equal Weighted Index Fund (NASDAQ:) is one in every of them.
QQEW tracks the returns of the . The fund began buying and selling in April 2006, and has round $1.31 billion in belongings. In phrases of the sub-sectoral breakdown, the technology sector makes up the best portion, with 39.28%, adopted by client discretionary shares (23.89%), health care (13.32%), industrials (9.50%) and others.
The prime 10 holdings account for 12% of the fund. Put one other method, it doesn’t carry the potential danger that comes with top-heaviness. FB inventory, whose weighting stands at 0.93%, just isn’t among the many main names.
China-based technology group NetEase (NASDAQ:) and travel companies supplier Trip.com (NASDAQ:), Dollar Tree (NASDAQ:), which operates low cost retail shops, human capital administration options supplier Paychex (NASDAQ:), Marriot International (NASDAQ:), which operates resort, residential, in addition to timeshare properties, are among the many prime shares within the roster.
Over the previous 12 months, the fund is up about 21.5%. Year-to-date it returned 10.2%. In the previous month, it’s down 4.5.%. Potential traders might regard a decline towards $105 – $107 as a greater entry level.