Tag Archives: facebook

Practice with T-Advisor: comparing Internet shares

Internet sector has a recent history but the shares are always a question of interest amongst investors. There are many examples of successful and failed companies. Currently, social networks are trendy: think about the launch of Twitter in New York. However, only Facebook is the only one in the top 4 of Internet companies focused on social networks. The others have other sources for revenues: Google, Amazon and Ebay.

The main data from these companies in T-Advisor are as follow:

Internet shares : Amazon main data in T-Advisor

Amazon is the biggest internet store. In 2013 the company increased 22% its sales to $74.5 bn and the net income reached $274 million ($0.59 per share).

Internet shares : Google main data in T-Advisor

Google is broadly known by its popular search engine, but it develops a wide range of internet, software and technological solutions. The sales increased in 2013 a 20.5% to $55.5 bn and the net income jumped to $12.9 bn ($38.13 per share).

Internet shares : Facebook main data in T-Advisor

Facebook is the biggest social network and it announced last week the buy of the messenger system Whatsapp. The revenues in 2013 totalled $7.8 bn, a 54.6% more. The net profit increased to $1.5 bn ($0.80 per share).

Internet shares : Ebay main data in T-Advisor

Ebay is the biggest auction platform in Internet. It is also the owner of the payment system Paypal. The net revenue in 2013 was $16 bn, a 14% more. The net income reached $2.8 bn ($0.19 per share).

The comparison in the main date made by T-Advisor has the following results:

Performance

YTD

Volatility

YTD

Score

Liquidity

VaR

1 week

Amazon

-13.05%

18.54%

6.40

10

-4.65%

Google

7.41%

15.02%

9.52

10

-3.34%

Facebook

25.48%

36.57%

8.28

10

-6.08%

Ebay

-0.50%

14.20%

6.36

10

-6.71%

Recent Facebook buy has not hit the share. On the contrary, it has the best performance YTD amongst the top group. However, it is very volatile and risky, as the VaR shows. The least risk is for Google, which has a good performance YTD with a moderate volatility. Amazon and Ebay have not begun the year positively and the score registers also this fact.