Good Idea to Invest In Facebook
In 2018, the world was introduced to several new digital influencers. From YouTube stars like Logan Paul and Instagram models like Emily Sanford, these internet celebrities boast millions of followers across platforms. And while they may not be as recognizable as Oprah or even Kim Kardashian, their presence has grown significantly over the past year. In particular, Facebook stock continues to pop every so often thanks to savvy investments in various social media stars. While some view this news with disdain (especially after the company’s recent Cambridge Analytica scandal), it could be a good sign for investors willing to take a leap of faith on this company once again. Here’s why you should invest in Facebook if you have the capital to do so.
Facebook Continues to Dominate the Digital Advertising Space
The digital advertising space is expected to reach $100 billion by 2022. This is good news for Good Idea to Invest In Facebook shareholders, as the company makes the majority of its revenue from digital advertising. In fact, digital ad revenue accounted for 84% of Facebook’s total revenue in its last reported quarter. The vast majority of advertisers continue to rely on Facebook for their digital advertising needs. The company’s ability to create highly targeted ads has made it incredibly easy for brands to bring in revenue from the platform. This is especially the case with video ads, which offer brands an opportunity to create highly engaging ads that are likely to be remembered by consumers.
Facebook Has a Proven Track Record of Purchasing Popular Start-Ups
Facebook has acquired several popular start-ups since going public in 2012. The company purchased Instagram in 2012 and WhatsApp in 2014. In fact, Instagram’s purchase price was just $1 billion, which is a far cry from the $38 billion it was worth when Facebook acquired it. Facebook has also purchased several Artificial Intelligence (AI) companies in hopes of improving the user experience on its platform. Moreover, Facebook has shown the ability to retain key employees after purchasing different companies. This is important, as many start-ups sell themselves to bigger companies in hope of being acquired. Doing so allows the start-up to focus on a more streamlined business plan. In turn, it also allows the acquiring company to benefit from the acquired company’s expertise.
Facebook Is Becoming an Incredibly Convenient Platform for Brands
Many people still view Facebook as a place for sharing silly photos and inane updates. While this was certainly true in the past, the company has been attempting to reposition itself as a more professional platform. In fact, Facebook recently announced a new initiative to partner with publishers. This program calls for publishers to create content exclusively for Facebook. This is part of Facebook’s effort to become a go-to source for news and information. Doing so would make it even more appealing to advertisers, as they would be able to reach a highly engaged audience that regularly clicks on news articles and headlines.
Facebook’s Plan to Integrate Messenger and WhatsApp
In addition to bolstering its news feed and attempting to become a go-to source for news and information, Facebook is also working to integrate its Messenger and WhatsApp apps. This move is likely geared toward increasing the convenience associated with both platforms. By combining the two services, Facebook is making it easier for people to communicate with one another. Moreover, Facebook may benefit from the added convenience by encouraging people to spend even more time on its platform. This would allow the company to show more ads to people, thereby increasing its revenue.
Bottom Line
Facebook stock in Forbes has certainly seen better days. It dropped 40% from July to September 2018 thanks to the Cambridge Analytica scandal. However, the social media platform continues to make savvy investments in emerging influencers. By doing so, Facebook is making itself more appealing to advertisers. In turn, this could lead to an increase in stock value as the company continues to grow. That being said, it’s important to keep in mind that there is no guarantee that Good Idea to Invest In Facebook will continue to rise. In fact, it’s likely that many people will continue to avoid the platform until they feel more confident in the company’s ability to protect their privacy.
