Facebook Inc. (NASDAQ:FB) aficionados have been waiting for the moment that Facebook TV goes live – that moment has been a fleeting one, as the release date appears to be a moving target lately. With a launch set for mid-August and investors and consumers looking forward to consuming as much content as possible on their favorite social media network, the question remains as to how big of a hit this new market segment will be for the social media giant.
With avid followers now topping billions, Facebook is one of those "once-in-a-lifetime" companies with a loyal, massive user base which has proven to be open to being monetized over time. The company has grown to become extremely profitable, despite many analysts initially suggesting Facebook would be a long-term flop and would be unable to monetize its impressive user base.
Unlike competitors in the social media space such as Twitter Inc. (NYSE:TWTR) which have indeed had problems in this category, Facebook’s profitability has proven to be one of its strongest traits, with the company’s stock price now trading at a "mere" 41-times earnings (formerly in the stratosphere).
The rollout of Facebook TV is likely to be a long-term hit, in my opinion, due to the simple fact that Facebook has done a much better job over the past five years in monetizing its user base than most of its competitors. As such, I would place my chips on the table now, as we wait to see just how good of a job management does in rolling this out. My guess is, once it is rolled out, it will provide some real challenges for competitors and profits for investors.
Invest wisely, my friends.
Tech Insider
