Despite what looks to be a very frothy stock market, with valuations at levels that have not been seen in some time, stocks like Facebook Inc. (NASDAQ:FB) continue to perform well. In this article, I’m going to discuss why Facebook still looks attractive, despite its rather rapid stock price increase in recent months.
Facebook’s prevalence as a key advertising platform has been shown during this last quarterly earning’s release. Facebook recorded second quarter earnings per share of $1.80 U.S. versus an estimated earnings per share of U.S.$1.39. This is a very strong earnings beat that appears to be driven by a continued push to e-commerce and online advertising platforms, away from bricks and mortar retail and traditional advertising platforms. Facebook’s platform is likely to continue to be an integral part of the continued corporate transition to e-commerce as a primary revenue driver long term, in the global economy.
Facebook’s monthly active user (MAU) metrics, a reflection of aggregate usage across its platform, came in at an impressive 2.7 billion versus an estimated MAU of 2.63 billion. The various verticals available to Facebook for monetization provide a long runway for revenue and profit growth. This makes Facebook a great long term holding for investors seeking a core position in big tech today.
Invest wisely, my friends.
Tech Insider
