A Third Swing at this Social Media Giant and Another Double-Digit-Percentage Gainer

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Online social media giant Facebook, Inc. (FB) is a recurring favorite among Alpha Algorithm strategies.

Because of our focus on risk management, it is also a stock that you already have held and were stopped out of for gains of 10% and 15%, respectively, on two occasions.

With the stock breaking out to new highs yesterday, and 11 Alpha Algorithm strategies betting on the company, I am recommending that you re-enter this position.

Founded in 2004 and headquartered in Menlo Park, California, Facebook, Inc. operates the world’s largest social networking site, with over one billion daily active users. Its solutions include Instagram, Messenger, WhatsApp Messenger and Oculus virtual reality technology.

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Facebook, Inc. (FB) vs. the S&P 500 over the past three months.

11 Top Investment Strategies Betting on Facebook, Inc. (FB)

  1. Hedge Fund Alpha

Based on publicly available disclosures, successful hedge fund managers are investing in the stock.

  1. Hedge Fund Gurus

The stock is one of the top U.S.-listed equity positions reported on Form 13F by select hedge funds with concentrated top holdings.

  1. Goldman Sachs’ Active Beta

The stock is selected according to four factors — value, quality, momentum and low volatility. These, in turn, are based on criteria including book value, sales and cash flow scaled by share price, profit/assets or return on equity (ROE), risk-adjusted returns and daily standard deviation of returns.

  1. Value Tilt

Selected using a multi-factor modeling approach, this is a value stock designed to enhance portfolio risk/return characteristics.

  1. IPO Index

The strategy tracks a market-cap-weighted index of the 100 largest U.S. initial public offerings (IPOs) over the first 1,000 trading days of each stock. Stocks must pass additional quantitative screens as well.

  1. Momentum Factor

The stock also is one of the top 120 large- and mid-cap U.S. stocks exhibiting relatively higher price momentum, as measured by a specific factor which has historically driven a significant part of companies’ risk and return.

  1. Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

  1. Pure Growth

The company is part of a strategy that selects companies from the S&P 500 Index, based on three growth factors: current internal growth rate, historical earnings per share (EPS) growth and historical sales/share growth.

  1. Large-Cap Momentum

The stock is part of a major hedge fund’s systematic strategy that invests in large- and mid-cap U.S. companies with positive momentum and that rank in the top third of total return over the prior 12 months, excluding the last month.

  1. IBD Top 50

The company is a Top 50 stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings or new product) or technical (upward stock move on strong volume) catalysts.

  1. Market Legend’s Pick

The stock is part of a strategy that replicates methods of a handful of legendary investors using 20-plus models built on fundamental valuation metrics, rather than technical factors.

Exclusive  What Can Go Wrong in 2022


Buy Facebook, Inc. (FB) at market today. Place your initial stop at $126.

I am holding off on a Facebook options recommendation today, as the stock spiked in recent days.

Portfolio Update

To make room for this week’s recommendation, sell your position in PepsiCo Inc. (PEP) for a 7.05% gain as it has fallen out of favor with the Alpha Algorithm strategies.

Raise your stop in Applied Materials (AMAT) to $36.00 lock in at least a 10% gain.

Comcast Corporation (CMCSA) split its stock 2 for 1 this past week, so you now hold twice the number of shares with the same value. The stock split also means that your stop price for CMCSA officially is halved to $34.00.

With your current stops in place, you have double-digit-percentage gains locked in for Altria Group (MO), Apple (AAPL) and Home Depot (HD).

VAA 2-23


Nicholas Vardy

Nicholas A. Vardyp

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