Facebook, Inc. Common Stock (NASDAQ: FB)
Facebook started as a private social network, growing to be one of the world’s largest companies – relatively quickly too! While some argue that the company has the market saturated, others are excited to see what the company does next. While I understand the market saturation argument, I have to disagree. At the end of the day, while the company is one of the world’s largest at the moment, I’m incredibly excited to see what it becomes in the future. Today, I’ll explain why I believe that FB has the potential to soar far, far higher!
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In my opinion, one of the most valuable aspects of Facebook has little to do with its social network. In fact, I believe that the company is likely to benefit greatly from virtual reality moving forward. The truth is that virtual reality is likely to become a massive market in the coming years.
While gaming is going to be a big part of the industry, it’s not going to be the entire industry. Virtual realty will likely be used in day-to-day life for things that could include browsing the web, watching movies, and even – you guessed it – socializing with friends.
Oculus is an amazing headset. It can be argued that it is years ahead of its competition. However, that’s not the only piece that makes the potential for FB so huge here. The other thing is that the company plays a huge role in the social media industry. It knows the industry inside and out, what works, and what doesn’t! As a result, the company has a massive head start over competitors when it comes to integrating the social experience into everything that is virtual reality. So, I’m expecting FB to lead the charge as this industry evolves.
One of the best moves that Mark Zuckerberg has made when it comes to acquisitions is Instagram. After acquiring the company, Facebook added its know how to the system, and, since then, the subscriber base on the website has been incredible!
Recently, Cowen & Co. ran some data. According to the data, Instagram is a platform that is growing at a rate of around 366,000 users per day. This is a massive growth rate. More importantly, it shows that the growth rate itself is, well… growing! Before the update, Instagram had been growing at a rate of 350,000 users per day. As the company continues to grow, FB continues to profit off of it. So, this is creating plenty of dollar signs for the company and its investors.
The Company Has Created A Way Of Life
Finally, one of the biggest reasons that I maintain a bullish opinion on FB stock is that the company hasn’t just created a social network. It has created a way of life. Today, a massive percentage of the world’s population uses Facebook. Chances are that if you have internet, you likely have a Facebook account! That speaks volumes about what the company is capable of.
Now, FB is breaking into the virtual reality industry. As the industry evolves, I believe that Oculus, a company Facebook purchased, will easily take the lead. As this happens, profits will only grow. This, combined with the company’s increasing success with regard to Instagram and the future plans I’m sure Zuckerberg is working on now, will likely lead to big gains in the long run.
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What Do You Think?
Where do you think FB is headed and why? Join the discussion at TalkTRENDZ from CNA Finance!
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