Facebook Inc (NASDAQ: FB)
Ah, Facebook. The company has now been publicly traded for four years. In fact, I remember the day that the IPO went live. It was before CNA Finance, when I was working as the general manager of a marketing firm. That day, I remember debating with the owner of the company I worked for, who said that FB would end up like MySpace. Well, here we are 4 years later and after more than 200% in gains. Ha! If you’re reading this Mr. Cocomise, you lose! Anyway, today, we’ll talk about why FB saw such incredible gains over the past 4 years, and what I believe we’ll see over the next 4. So, let’s get right to it…
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FB Has Had An Incredible First 4 Years On The Market!
As mentioned above, the first 4 years as a publicly-traded company have been incredible for Facebook. The company gained 207% in this time period, outpacing the Dow Jones Industrial Average, the NASDAQ, and the S&P 500 by wide margins. So, what was it that made this company grow in value so quickly? Well, the answer is an interesting one.
When FB First launched its IPO, it proved to be a horrible one. Investors believed that it was over-priced. After all, they were looking at a social network, and we’ve all seen what happened to MySpace and other social networks in the past. These are usually fads that don’t last very long. However, in Facebook’s case, this one wasn’t a fad. No, it was an incredible company.
You see, Mark Zuckerberg, the founder of FB, has always had a core focus on users. When the social network first launched, Zuckerberg refused to show advertisements. Of course, there came a point where the cost of running the network required ads. However, even then, he has been very precise about where ads should be on the website and making sure that ads don’t turn users off.
From there, FB started to grow exponentially. Soon, the network became much more than a social network. It quickly became ingrained in the average day-to-day life of consumers. Soon, they weren’t simply going on the network to touch base with friends and family; consumers started watching videos, playing games, and even shopping.
However, it didn’t stop there. To take Facebook up another level, it was time to really think outside the box. It was time to think about gaming – virtual reality gaming to be exact. In fact, today, FB owns Oculus, which is considered to be the most popular virtual reality headset on the market today.
Here’s the bottom line. FB isn’t a social network that made it big. It is a company that has focused on the core values of community. By putting consumers first, studying consumers, and giving them exactly what they wanted to see, Facebook has grown to be a force that simply can’t be stopped. With over 1.5 billion active monthly users, it has become a Goliath.
What We Can Expect To See Over The Next 4 Years
When it comes to FB, I have an overwhelmingly bullish opinion of what we can expect to see from the stock moving forward. The first 4 years were absolutely incredible for the company and its investors, and the positive movement was the result of managements key focus on the consumer. I’m not expecting this focus to change. As such, I’m expecting to see continued growth out of Facebook’s stock moving forward.
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What Do You Think?
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[Image Courtesy of Pixabay]