Technology giant Facebook Inc. (NASDAQ: FB) has continued to prove its value as an indispensable part of our lives during this pandemic. Few companies have been able to showcase their strength during this rocky economic period, as consumer spending declines amid spikes in unemployment and bankruptcies. Facebook is among a rare handful of companies that is now more valuable than ever, as investors continue to re-balance their portfolios.
Advertising spending, which was expected to show weak results, actually came in flat on a month over month basis, blowing away expectations of weakness that analysts had built into the company's earnings which were released a month ago. The blow away earnings report Facebook released was both impressive and thought-provoking for many investors, myself included.
These results showcased the incredible force driving the strong currents of social media advertising as a primary advertising medium for companies moving forward. Investors now must rethink their expectations for growth in advertising in the online category relative to traditional platforms, as market shares continue to shift.
Analysts also expect an incredible wave of profitability growth to come via the increasing monetization of WhatsApp, which has yet to be monetized in any significant way compared to the company's other core businesses. Facebook stock is one that still looks cheap to me. I encourage all tech investors to dive deeper into the company's financials to see precisely what I mean. The numbers, after all, are incredible.
Invest wisely, my friends.
