Facebook

Facebook’s Stock Continue to Rise Because of Instagram’s Stellar Growth

Facebook had recently become the center of attention when the government probed it regarding its data privacy scandal. 

This happened around 2018 when Facebook’s stock dove a steep 40% around the same time. Since then, it has been tugging between the bullish and bearish phase in the stock market. 

However, the latest reports suggest that it may be inclined towards the bullish phase and might break all records. 

Current Position of Facebook Shares

During 2019, its privacy scandal was finally settled at a hefty fine of $5 billion. This created a huge dent in FB’s stock price and demotivated its buyers. However, its stock prices are now at a record all-time high. 

According to FB’s third quarterly reports, the results were much better than expected. Starting from 2013, Facebook’s stock prices have risen at a good percentage of 600%. Accordingly, it has risen around 57% in the last year alone, with an additional 7% in January 2020. 

Reasons for Impact on FB’s Stock Prices

According to the analyst Brian Nowak of Morgan Stanley, he has speculated that FB’s stock prices should reach $250-270 during this year. Currently, its stock prices are sitting at an average of $210. 

Brian suggested that this was achieved due to revenues from Instagram Stories Ad business. Thus, it can earn more in the coming months as its user base has grown significantly. He also speculates that Facebook could expand its ad revenues through the Instagram Explore tab as well. 

Apart from this, WhatsApp and Facebook itself could provide good opportunities for generating revenue. WhatsApp Business is currently available for free in the App market. Here, FB could easily monetize it to increase its profits. 

Currently, ads on Instagram are displayed in the form of stories and posts. Thus, Instagram expects to bring over more than $1 billion in revenue from Ads alone. 

Current and Future State of Facebook Shares

As of now, FB’s share has received positive reviews from various members of Wall Street. Besides, 88% of the people have voted to buy the share while 8% advise holding it for now. 

As per its last one year chart, you will notice that FB has significantly grown and is about to reach an all-time high. Therefore, there are significant reports to suggest that Facebook is a good investment. 

Although its fourth-quarter results are yet to be announced at the end of January. This will help to provide a much clearer picture of the direction that Facebook is heading towards. 

Final Words

With the help of Facebook, WhatsApp and Instagram, FB’s stock prices have recovered after its great fall in July 2018. Currently, it is at an all-time high with predictions to go even higher. The stock market is already positive regarding its future growth and urging people to either buy or hold its stock. 

Towards the end of this year, its prices are expected to go up to $270. Therefore, Facebook is considered as a great stock opportunity for shareholders. 

David R. Clark

Recent Posts

Spotify DNA: What Is It And How It Works?

Our habits always have a pattern. Be it related to sleeping hours, working, listening to…

2 months ago

Instanavigation Details And Benefits

On the social site Instagram, users can update their status as stories, which they can…

2 months ago

Perks of Outsourcing Digital Marketing for Businesses

Because of various upgrades in technology, things have moved pretty fast and the competition level…

2 months ago

Impact Of Artificial Intelligence On Our Future

Ever since the term ‘Artificial Intelligence’ was coined, people desperately wanted to know what it…

2 months ago

Is iPhone 16 Pro The Best And Most Affordable Pro Model Ever?

In recent days, there has been a lot of discussion regarding the iPhone 16 Pro…

2 months ago

Will iPhone 16 Raise The Bar With Apple Intelligence?

With a boatload of new additions, like Apple Intelligence and a dedicated Camera 'Button', the…

2 months ago