Facebook Inc (NASDAQ: FB)
Facebook has had an incredible time in the market through its run thus far. Now there’s only one question to be answered… can the stock climb further? Today, we’ll talk about the bullish view, the bearish view, and what I expect to see from FB moving forward.
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The Bullish View On FB Stock
When it comes to Facebook, the bullish view is relatively simple to understand. The company started as a simple, private social network. However, when the flood gates opened, the flood of users came in, and soon enough the company grew to be the largest social network in the world. Today, FB boasts well over 1 billion active monthly users. However, it doesn’t stop there.
You see, FB didn’t become so popular simply because it’s a great social network. It became so popular because the company ingrained itself into the normal day to day life of the average consumer. When it comes down to it, Facebook’s visitors aren’t just saying “Hi” to grandma! It’s much, much more. These days, FB is where many people get the news, consume video content, listen to music, play video games, and even shop! Not to mention, the company has taken its business from the online playing field to the hardware playing field with Oculus, the company’s virtual reality headset. All in all, the bulls argue that FB isn’t going to climb because it’s a great social network; it’s going to climb because it has proven its ability to saturate the market and continue to innovate.
The Bearish Argument With Regard To Facebook
While there are plenty of bulls on FB, there are also plenty of bears and, I have to say, the bearish argument is understandable. The bears argue that FB has set the bar so high for itself that it’s going to be hard for the company to maintain positive momentum. The argument is relatively simple. You see, it is estimated that there are about 7 billion people in the world. Many of these people simply don’t fit into Facebook’s demographic. Some don’t have internet services, some are far too young to create a Facebook profile, some simply aren’t interested in the entire social network genre.
With that said, FB currently has about 1.65 billion active users. That means that nearly one out of four people around the world use Facebook actively on a monthly basis. Essentially, the bears argue that FB has done an incredible job saturating the market. However, because of their market saturation, it is going to be incredibly hard for the company to grow from here.
What I’m Expecting To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Facebook. While I understand the market saturation argument, I believe that the bears are missing the mark here – and that’s hard to admit. The truth is, when FB hit 1 billion active users, I was a bit concerned about market saturation myself. However, in this particular case, there’s no reason to be concerned. The reality is that FB has proven its ability to innovate and keep their audience interested. With the company consistently offering new products, services, advertising opportunities, and more, it’s hard to imagine that we’ll see the momentum come to a stop any time soon. All in all, I’m expecting to see big gains moving forward.
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What Do You Think?
Where do you think FB is headed moving forward and why? Let us know your opinion in the comments below!
[Image Courtesy of Pixabay]