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Would Facebook Inc (NASDAQ:FB) cryptocurrency “Libra” a Threat to Bitcoin?

By on June 21, 2019 0

Facebook Inc (NASDAQ:FB) has already confirmed about its new cryptocurrency “Libra” that it’s not designed to kill or compete with the already popular virtual currency bitcoin. The man leading Facebook’s crypto efforts, David Marcus, said that Libra and bitcoin can co-exist with differing use cases, and that’s a fact that he is a big fan of BTC also.

Marcus explained, in a tweet yesterday, that Libra is designed to be a stable payment system. On the other hand, Bitcoin, he believes, is a store of value or a non-correlated asset, playing into the ‘digital gold’ narrative.

    “Many want to pit Libra vs. Bitcoin. In my mind these two are not in the same category. BTC is a decorrelated (investment) asset. Libra is designed to be a stable medium-of-exchange. I have been, and remain a fan of BTC, but for very different purposes.”

Marcus, who was former president at PayPal, claims Libra is a better digital cash and payment system, while bitcoin is a long-term investment vehicle.

Facebook Inc, NASDAQ:FB, FB As CCN reported, almost no-one is using bitcoin for payment transactions. In 2019, only 1.3 percent of bitcoin transactions involved merchants. In other words, most BTC users are holding for the long term.
Technical Stock Analysis

Facebook Inc (NASDAQ:FB), a Technology sector firm, traded 14.59 Million shares in last trading session and stock edged up 1.09% with closing price of $189.53 per share. Company gross margins represents its total sales revenue minus its cost of goods sold (COGS), divided by the total sales revenue earned by the company, expressed as a percentage. And its good to know that the higher that percentage, the more the company retains on each dollar of sales, to service its other costs and the debt obligations, and Facebook Inc (NASDAQ:FB)’s gross margin stands at 82.60%.

Investment Worthy Stock or not?

For personal guess ROI is usually expressed as a percentage and is typically used for taking any financial decisions, for the purpose of comparing a Facebook Inc (NASDAQ:FB)’s profitability or to compare the efficiency of different investments, hence, FB return on investment (ROI) is 25.80%.

52-Week Range

52-Week Range are valuable stats for watching Facebook Inc (NASDAQ:FB)’s past year fluctuation as that gives investors an idea of how much the security has moved in the last year and whether it is trading near the top, middle or bottom of the range. Facebook Inc (NASDAQ:FB)’s stock value has moved between $123.07 – 217.85 in last one year.

Analyst’s Views

Analysts mean target price for Facebook Inc (NASDAQ:FB) is $222.30 while analysts mean recommendation is 1.90.

Stock Performance

Its weekly performance is 6.80% while year to date (YTD) performance is 44.58%.

EPS Growth

Earnings per share growth is defined as the percentage change in normalised earnings per share over the previous 12 month period to the latest year end. It gives a good picture of the rate at which a company has grown its profitability. Facebook Inc (NASDAQ:FB)’s EPS growth this year is 22.90%. For best decision making investors should look at Facebook Inc (NASDAQ:FB)’s EPS growth for next year stands at 32.03%.

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