Facebook is the largest social network on the Internet. Mark Zuckerberg together with Eduardo Saverin, Chris Hughes and Dastin Moscovitz founded it in 2004. As of today, the networking service accounts over a billion of users. Although it was initially allowed only to Harvard students, the social networking service gradually expanded the number of its users. Since September 2006, it is opened to everyone. The only requirement to become a user is to have an email address and be at least 16 years old.
The stock of the company is traded on the NASDAQ stock market under the ticker FB.
Despite statements about a decrease in popularity of social networks, Facebook represents huge investments, serious interests and possibilities amounting to million and billion dollars. Founders, investors and concerned parties will do everything to make this system work successfully and return a profit. All these factors encourage buying Facebook stock.
One of the factors influencing Facebook stock is revenue of the company in the accounting period. A rise in revenue y-o-y pushes up stock quotes.
The primary source of Facebook revenue is advertising. Facebook is one of the most promising companies on the U.S. Internet. Facebook shows not only steadily rising revenue last several quarters but also makes it faster. To forecast a rise or fall in advertising revenue, a trader has to thoroughly analyze service user involvement. Advertisers’ money is the primary source of the social networking service revenue this is why it makes sense to invest in it only if the number of users grows. And this is the reason why Facebook stock rises if this figure grows.
More than half of the total advertising revenue accounts for mobile advertising. Analysts expect this figure rise if service user involvement keeps growing at this rate.
Due to advertising, the company has increased its profit manifold and successfully achieved its goals over recent years. Undoubtedly, this encourages traders to invest in the company.
You can find important news and events on Facebook official webpage for investors.
The company publishes plans, reports and other data that can have a strong impact on the stock price there. If you see a rise in figures, strategies, plans, this is a sign that Facebook stock will move up.
Also, you can find news on Facebook stock on the и NASDAQ and Reuters:
Facebook revenue is significantly influenced by development of new advertising media helping an advertiser attract new users. For instance, the company has started promotion of mobile video advertising. As this project is pretty young, it doesn’t have a lot of users, and experts don’t consider it in fundamental analysis and its impact on future quotes of Facebook stock.
A trader investing in Facebook stock has to consider other projects the company participates in. For instance,
- — Instagram acquired by Facebook at $1 billion in 2012.
- — or WhatsApp acquired by Facebook at $19 billion.
These projects can have a positive impact if they are monetized.
Despite a room for future growth of WhatsApp, there are a great number of deterrents. One of them is international competition with the Asian companies like Kakao, Viber, Wechat, LINE. The last two have much better functionality than WhatsApp allowing their users to book a table in arestaurant, mobile money transfer, managing assets etc. WhatsApp allows its users just to send text messages. By the way, this way of communication on the Internet is the most popular with the U.S. users. Although monetization of the service will take time, this will have a positive impact on the company and its shares.
If some countries block the social network, this has a negative impact on the company. This causes a decrease in the number of users, and quite often an advertiser can’t complete his advertising campaign intended to attract new audience because the service was banned or suspended.
Scandals connected with the social networking service have also a negative impact on the price of Facebook stock. For instance, one of them was caused by insecurity of the users’ information, in particular, messaging between users.
In 2013, it was revealed the U.S. special agencies surveiled foreign users outside the U.S. without court sanction. The U.S. president Barack Obama acknowledged this fact.
Scandals around Facebook on different issues are quite numerous. Undoubtedly, each of them shakes investors’ faith in the social network or sometimes attracts more users and advertisers to Facebook increasing its traffic.
Today, experts anticipate a rise in the price of Facebook stock by 40% next year.
How to Buy FACEBOOK Stock?
To buy Facebook stock, you need access to the NASDAQ stock market, large capital and much time until your investment returns a profit.
This is why I prefer to buy options on Facebook stock. Binary options are affordable and return a fixed profit during a set period of time. A trader may invest in binary options even just for 10 minutes and make the same profit as if he invests for a period of a month, that is, at least a 70% profit.
To make a profit on an option, you just need to figure out whether the price of Facebook stock will rise or fall during validity of your option.
I prefer to deal with AnyOption, the largest and most reliable broker that I know. This is the top binary option broker regulated by the EU institutions, CySec, CONSOB, FCA etc.
So, I browsed the broker’s webpage and selected an underlying asset, that is, Facebook stock. I set the time of expiration to 21:30, typed the investment amount and clicked on the CALL (UP) button:
If the price of Facebook stock rises even by a pip during 23 minutes, I would make a profit.
After a little while I saw the following result on the broker’s website:
As you see, Facebook stock rises. My $60 investment returned me $106.8 and a $46.8 net profit.
Learn more about binary options and make money on the tradable assets.
Any of you can invest right now in the world’s top companies due to binary options and make at least a 70-80% profit.