2 min read

Buy Alert: Facebook (FB), Paypal (PYPL)

Buy Alert: Facebook (FB), Paypal (PYPL)


No doubt you've already heard that Russian forces have begun targeting Ukrainian military installations overnight.

With that, S&P futures are down 2.5%, and Nasdaq futures off 3.5% - huge down moves.

I think this may be the bottom we're looking for - one of those days where the market opens way, way down - and then recovers as the session wears on.

I think it certainly could be for 2 stocks I first mentioned on Monday as potential buys to watch for - Facebook-Meta (FB) and Paypal (PYPL) which I'm putting into the goodBUYs portfolio this morning at opening session prices.

Both stocks are down 5-6% in pre-market trading - and "filling the gap" left behind from their April 2020 rallies. I think this will mark the bottom of their huge declines in past weeks.

I've marked in red where both stocks are priced in pre-market trading; for Facebook it's at $190, and for Paypal, $95:

Back in March 2020, as stocks bottomed out from the onset of the pandemic, I wrote an article titled "I Can't Believe Facebook is this Cheap." At the time, Facebook had plummeted to a price/earnings ratio of 16.

The stock went on to soar 127% over the next year and a half.

Today, the stock is trading with an even cheaper multiple, a p/e ratio of 15, very cheap indeed - and I think can at least rise 50% over the next 12-18 months.

Paypal's stock has likewise gotten so cheap that 2 company insiders - members of the board of directors - bought nearly $1.5 million worth of shares as insider purchases in recent weeks.

There's an old saying popularized by the 19th century investment banker Nathan Rothschild..."Buy on the sound of the cannons [the start of war], sell on the sound of the trumpets [the peace as the war concludes]."

I think we could see something similar play out with our own markets. The Russian invasion effort - and the plunge in the stock market of late - complicates the Federal Reserve's interest rate policy.

It wouldn't take much - a speech by a Federal Reserve Bank president, for instance, indicating that the central bank is re-thinking its aggressiveness on interest rates - to put renewed vigor back into the market.

Best of goodBUYs,

Jeff Yastine