Facebook Inc (NASDAQ: FB)
Facebook is an incredible stock. While many consider the company to be a social network, it goes far beyond that. Over the years, we’ve watched as Facebook has evolved in a big way, not to mention the massive growth we’ve seen on the stock. However, are the gains over? Or is there still good reason to be bullish on FB? In my opinion, we can expect to see solid gains in the stock moving forward. Today, we’ll talk about why.
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Facebook Is A Recession Proof Way Of Life
As mentioned above, we have watched an incredible evolution in FB over the past several years. At first, the company was a social network. Today, it’s far more than that. In fact, it has become a way of life, and a recession proof one at that. To date, more than 1 billion people actively use Facebook. Grandmothers use it to get in touch with their grandchildren, friends use it to chat, consumers use it to play games, watch videos, listen to music, and more. When it comes to FB, if there’s a way to digest content online, chances are this company offers it to one extent or another.
The neat thing about all of this is that Facebook is free for consumers! They make their money from advertisers, making their business model relatively recession proof. This is what sets FB apart from companies like Apple and Amazon. During times of economic recession, companies like Apple and Amazon have to worry about declining demand and lower consumer spending. Since Facebook is free, chances are that it will continue to grow – even during tough economic times. This is incredibly important when it comes to current times. Look around my friends; the global economy is in the dumps.
Aside from the fact that FB has built an empire around a recession proof product model, there are several other reasons to be excited about the stock. One of the biggest ones is virtual reality. Quite a while ago, FB decided to get into the virtual reality space by paying $2 billion for the acquisition of Oculus. In my opinion, this was an incredibly strong move. At this point, virtual reality is expected to be the next big thing in tech, generating billions upon billions of dollars in sales per year. Facebook hit this trend on the ground level, so they don’t have to worry about scrambling to catch up. In fact, the Oculus Rift virtual reality headset is already available for pre-order with a price tag of $599.00 each! Considering the fact that demand for VR is likely going to climb, Facebook shouldn’t have anything to worry about when it comes to earning back their $2 billion and then some.
The Bottom Line
The bottom line here is that Facebook is an incredible company. What Zuckerburg has done with his college creation is nothing less that incredible! Through the years, FB has grown from a simple social network to an empire that controls the social media realm, plays a big role in online advertising, and is moving into consumer electronics. Also, given the fact that the world is moving toward mobile connectivity, FB is making very smart moves to become a major player in the space as well. All in all, I’m incredibly impressed with this stock and I’m expecting to see more gains moving forward.
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What Do You Think?
Where do you think FB stock is headed moving forward? Let us know your opinion in the comments below!
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