Facebook (FB) Growth Outpaces Apple (AAPL), Alphabet (GOOGL)

 
Facebook (FB) is trumping fellow top tech stocks Apple (AAPL) and Alphabet (GOOGL) in rising revenue and profits, Investor’s Business Daily reported.

Apple officially became middle-aged Friday with its 40th birthday, but its 14% three-year annual sales growth rate and 19% three-year annual EPS growth rate still outpace those of the teenage Alphabet (14% and 13%, respectively).

But the even younger Facebook trumps both of its fellow tech titans. The social media giant has been growing revenue at an annual rate of 54% over the last three years, while earnings have risen at 71% annually over the same period.

Facebook’s 55.6% annual pretax profit margin has also allowed founder Mark Zuckerberg to place several multibillion dollar bets on Instagram, WhatsApp and Oculus VR—as well as invest heavily in mobile advertising and new apps like Facebook Messenger. By comparison, Apple (31%) and Alphabet (33.1%) have smaller but still strong profit margins.

FB is up 205% since it was recommended in Cabot Growth Investor in August 2013.

Stock Picks

Tesla Motors

If Tesla ever begins to cut back on development and innovation costs, earnings will soar.

Alibaba

China seems to be raising up its very own version of Amazon in Alibaba (BABA.

Facebook

Roy Ward uses the PEG ratio to determine if the stock is undervalued or overvalued.

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