I’m a tech junkie, but I’d like to be absolutely clear about something before I get into this post. I think that there’s a tech bubble in the making. I also think that investors who dump money into Amazon are absolutely crazy and that 95% of tech companies today are incredibly overvalued. With all of that being said, there is one tech company that I think far outshines the rest in the stock market right now; that company is Facebook (FB). So, I’ve compiled a list of five reasons why I absolutely love Facebook’s (FB) stock below!
Reason #1: Ability To Generate Profits
One of the things that draws me so heavily to the tech market is the fact that there are several companies doing well in the stock market that can’t seem to generate a good amount of net earnings. Amazon (AMZN) is a key example of that! However, when it comes to Facebook (FB), we’re talking about a company that’s known for producing massive net gains quarter after quarter! Can anyone say dividends?
Reason #2: Facebook Has A Clear Growth Plan
When it comes to the tech industry, there are several companies that don’t seem to have a clear growth plan. Sure, they say they’re going to generate more traffic, produce more revenue, etc… but all in all, it seems like many of them just throw ideas at the wall and hope that they stick. Look at Google (GOOG) for instance. The company has had more poor product launches recently than they’ve had positive launches. Think of the billions of dollars Google (GOOG) spent on the failure now known as Google+. When it comes to Facebook however, the company is generally very clear about what they plan to do with regard to growth; and they have a history of executing their plans well! As an investor I not only love transparency, but I’m also a stickler for results; So, this is a win/win in my book.
Reason #3: The Company Doesn’t Provide A Product, They Provide A Life Management System
Another thing I’ve found incredibly appealing about Facebook (FB) is that we’re talking about a company that has become far more than an asset, a group of products, or a service. Facebook (FB) is far more than that! The company literally runs lives. Facebook has more than a billion registered users, many of which use the several times per day to communicate with friends, family and associates, store images, search for something funny, or even research a recent topic. These people aren’t using a product, they’re using a life management system; one that they wouldn’t know how to let go! This means that the company simply can’t fail!
Reason #4: Social Media Is Trendy!
As investors, we all know that we make our money from trends. So, when there’s a strong trend in one way or another revolving around a specific company, product, or even genre of products, we tend to see strong growth. Well, guess what….social media is ridiculously trendy! So, what company seems to be in the spotlight with the social media trend? You guessed it…Facebook (FB)!
Reason #5: The Facebook Team Is Brilliant
Now matter how big a company is, it’s incredibly important for any company to invest resources into growth; and Facebook (FB) isn’t afraid to do just that. When it comes to the people who are feverishly working to continue improvements to the company and website as a whole, Facebook seems to have the best and brightest! Since the key factor to any company’s growth are the people driving the engines behind the scenes, it’s clear that Facebook (FB) is on the right track here!
When it comes to the tech market, I’m definitely on the bearish side of the fence as we speak. However, there are definitely a few tech companies that make me want to run with the bulls. With that said, there is not one tech asset that I’m more bullish on than Facebook! In my opinion, the company is a gold mine!
What Are Your Thoughts?
Do you like Facebook as an investment? Why or why not? Let me know in the comments below!
This article is intended for entertainment purposes only. If you are looking for investment advice, please reach out to your local CFP.