What are the companies to be watched this week on Wall Street? Companies like Facebook and Apple have a decent run up. Many investors assure that the margin for error is slim, at the current rate.
Facebook is almost on its way to an all-time high. The company has already stretched into high price to earnings multiples to make investors buy more. According to senior portfolio manager, Daniel Morgan, there is very less chance of error in this prediction.
The market for Facebook share is priced in the more upside risk showing optimistic market for the investors planning for Facebook options. It has a 55.45 P/E multiple. Facebook will report its quarterly results on Wednesday and Apple will do so, on Monday.
Many players have withdrawn anticipating a reduction in the purchase of bonds. The shutdown has had a significant effect on Fed, which is expected to maintain in its present policy in the upcoming October meeting. The earnings are balanced and at this rate, Fed could support the market as before.
Apple was once, considered as a player, who has gone out of the game. But then Apple recovered due to the fund flow from investors. Morgan says that there are chances for Apple to reverse the falling stock price trend, with the high iPad sales.