Facebook Stock Is A Great Buy, Here’s 5 Reasons Why
BitcoinPriceLive recommends adding Facebook stock (NASDAQ: FB) to your must buy list. The company has the most dominant moat in the entire social networking space. With 1.3 billion users, there is nothing to stop this juggernaut of a company from being the first trillion dollar company. No other company with a market capitalization over 100 billion dollars, is growing as fast as Facebook. Additionally, you get the brightest and most talented CEO in the world: Mark Zuckerberg.
Here are the top 5 Reasons Facebook stock is a screaming buy:
1) Mark Zuckerburg Is The Boss
Mark Zuckerberg can dodge more bullets than Neo in the Matrix. He owns 51% of the voting rights for the company, and has total executive control over his company. Mark is holding way more shares than anybody else, and he has the most riding on Facebook’s performance. If Facebook fails, so does Mark, but that is not going to happen because Zuckerberg always plays his cards perfectly.
2) Facebook Added 30 Million Users Last Quarter
Check out the second quarter results for yourself. With Facebook already having 1.3 billion users, 30 million extra users sounds like nothing. That is until you consider that a new social network with 30 million users would be valued over a billion dollars right now. Not only do you get an extra 30 million users or more each quarter, but these new users are seamlessly integrated into the existing Facebook network. The network’s scalability is only limited by the number of people on Earth.
3) Facebook Stock Is Cheap
With a price-to-earnings ratio of 82, Facebook is extremely cheap. The company is growing so fast that the P/E will come down to 30 next year, if the price stays the same. A price-to-earnings ratio of 30 and a price of $78 would make Facebook stock very attractive.
4) Advertisers Are Spending More Than Ever And Facebook Is Raising The Price
Social networks are becoming very important to businesses, and many businesses pay huge amounts to Facebook for advertising. Samsung once spent $10 million dollars in Facebook ads to gain $129 million in sales. However, that was in November of 2012. Since that time, the cost of Facebook ads has risen, and the ads are reaching less people. Facebook’s clients do not seem to care though, as they pile advertising money towards Facebook ads.
5) Facebook Could Seamlessly Integrate Bitcoin Into Its Platform and Become Banking 2.0
Unlike Twitter, Facebook pretty much holds you to one identity. This means when you receive a message from a friend, you trust that the message is coming from that person typing at a computer or phone. People have trust in their friends over Facebook, so they will be totally comfortable sending Bitcoins over Facebook.
Each Facebook profile could have a Bitcoin wallet associated with it and Facebook could insure these wallets. Facebook would become the most trusted bank overnight because it would be a bank created by people. Facebook remains on the sidelines with Bitcoin because the regulatory situation of Bitcoin is unclear. However, once Mark Zuckerberg knows the correct play, he will dominate banking the way he dominated social networking.
Facebook will report 3rd quarter earning results on October 28, 2014.
Do you think Facebook stock is a good buy? Give us some feedback below.