I write to discuss Facebook shares on NASDAQ. It is my opinion that the shares will double in price in the next 1 to 2 years. It is currently trading around $80 a share. At the moment many analysts in the States predict the share price in the short term to be around $105. I'm thinking of taking out a couple of hundred grand in equity and taking a risk....
Here are some comments from brokerage firms in New York:
-The key to the Facebook story continues to be its ability to succeed on the mobile platform, where significant ad dollar growth is likely to occur for multiple years.
-Facebook?s video consumption growth remains explosive as it evolves into a premier digital mobile video platform, reaching 4 billion video views/day in 1Q15 (75% on mobile) vs. 3 billion in 12/14 and 1 billion in 9/14.
-While clearly a more loved stock by global investors in 2015 vs. 2014, Facebook?s continued execution, early stage in monetization of time spent and leadership position in mobile shouldn?t be treated with complacency. Going forward, we look to (the second half of 2015) and 2016 as catalysts for product innovation and monetization as Facebook broadly deploys solutions in video, messaging, eCommerce and ad tech.?
-While there was not much quantitative detail in terms of 1Q15 results regarding video ads, we still think video ads and gradually higher ad load rates on the core Facebook news feed and overall Instagram ads with higher penetration with large brand advertisers will be key incremental revenue growth drivers this year and into 2016.?
-Facebook remains one of our Top Long Recommendations in the Large Cap Net sector. Facebooks?s Q1 P&L and Metrics results were intrinsically very strong. We see the company correctly ramping up investments ? from a position of strength ? in many promising, high-growth areas (e.g. video ? now at 4 billion daily video views vs. 1 billion in Q3). And those high-growth areas represent four greenfield revenue opportunities (Instagram Monetization, Auto-Play Video Ads, FAN & WhatsApp) that can contribute well over $2 billion in incremental revenue in 2015.?
An analysis by Morgan Stanley recently suggests: ??FB is on a trajectory to surpass Google as the biggest winner of incremental ad dollars??:
http://finance.yahoo.com/news/looks-facebook-could-soon-pass-171923895.html
Another thing to consider is that if FB is allowed to operate in China in the future I believe there will be a massive surge in the stock price. Its only a matter of time when this will happen.
Management in FB are evidently very strategic when it comes to increasing its MAU (monthly active users)?.
http://www.zdnet.com/article/who-re...ree-internet-plan-for-africa/#ftag=YHFb1d24ec
To sum up?. Here is a stock comparison between Google and FB:
http://www.nasdaq.com/symbol/goog/stock-comparison
Google is priced at $533 a share (this is after a stock split a few yrs ago). FB is currently priced around $80. Its anyone?s guess what the price of FB will be in 2 or even 5 years time. Investing on the stock market does have its risks. However, FB?s debt levels are extremely low and their revenues are exploding year by yr. Even if the market crashes, the company is financially strong and has in excess of 1 Billion MAU's (and growing everyday). They are also close to releasing their virtual reality software and they are about to roll out the search functions which could directly compete with Google. Read this article entitled
''Facebook?s New In-App Search Could Be a Google Nightmare'':
http://www.wired.com/2015/05/facebook-add-a-link-search/
Facebook has much more ad space on its social network ? and higher engagement. Facebook is now the second largest online ad seller globally, trailing only search giant Google Inc. (GOOG).
Facebook?s revenues are growing swiftly as ad load rises and more advertisers ramp up their digital efforts to target the new age users. Analysts polled by Bloomberg expect the company?s annual revenues to rise to $29 billion by fiscal 2017, up from $12.4 billion in fiscal 2014.
Here are some comments from brokerage firms in New York:
-The key to the Facebook story continues to be its ability to succeed on the mobile platform, where significant ad dollar growth is likely to occur for multiple years.
-Facebook?s video consumption growth remains explosive as it evolves into a premier digital mobile video platform, reaching 4 billion video views/day in 1Q15 (75% on mobile) vs. 3 billion in 12/14 and 1 billion in 9/14.
-While clearly a more loved stock by global investors in 2015 vs. 2014, Facebook?s continued execution, early stage in monetization of time spent and leadership position in mobile shouldn?t be treated with complacency. Going forward, we look to (the second half of 2015) and 2016 as catalysts for product innovation and monetization as Facebook broadly deploys solutions in video, messaging, eCommerce and ad tech.?
-While there was not much quantitative detail in terms of 1Q15 results regarding video ads, we still think video ads and gradually higher ad load rates on the core Facebook news feed and overall Instagram ads with higher penetration with large brand advertisers will be key incremental revenue growth drivers this year and into 2016.?
-Facebook remains one of our Top Long Recommendations in the Large Cap Net sector. Facebooks?s Q1 P&L and Metrics results were intrinsically very strong. We see the company correctly ramping up investments ? from a position of strength ? in many promising, high-growth areas (e.g. video ? now at 4 billion daily video views vs. 1 billion in Q3). And those high-growth areas represent four greenfield revenue opportunities (Instagram Monetization, Auto-Play Video Ads, FAN & WhatsApp) that can contribute well over $2 billion in incremental revenue in 2015.?
An analysis by Morgan Stanley recently suggests: ??FB is on a trajectory to surpass Google as the biggest winner of incremental ad dollars??:
http://finance.yahoo.com/news/looks-facebook-could-soon-pass-171923895.html
Another thing to consider is that if FB is allowed to operate in China in the future I believe there will be a massive surge in the stock price. Its only a matter of time when this will happen.
Management in FB are evidently very strategic when it comes to increasing its MAU (monthly active users)?.
http://www.zdnet.com/article/who-re...ree-internet-plan-for-africa/#ftag=YHFb1d24ec
To sum up?. Here is a stock comparison between Google and FB:
http://www.nasdaq.com/symbol/goog/stock-comparison
Google is priced at $533 a share (this is after a stock split a few yrs ago). FB is currently priced around $80. Its anyone?s guess what the price of FB will be in 2 or even 5 years time. Investing on the stock market does have its risks. However, FB?s debt levels are extremely low and their revenues are exploding year by yr. Even if the market crashes, the company is financially strong and has in excess of 1 Billion MAU's (and growing everyday). They are also close to releasing their virtual reality software and they are about to roll out the search functions which could directly compete with Google. Read this article entitled
''Facebook?s New In-App Search Could Be a Google Nightmare'':
http://www.wired.com/2015/05/facebook-add-a-link-search/
Facebook has much more ad space on its social network ? and higher engagement. Facebook is now the second largest online ad seller globally, trailing only search giant Google Inc. (GOOG).
Facebook?s revenues are growing swiftly as ad load rises and more advertisers ramp up their digital efforts to target the new age users. Analysts polled by Bloomberg expect the company?s annual revenues to rise to $29 billion by fiscal 2017, up from $12.4 billion in fiscal 2014.