Buz Investors Record High Facebook Inc (NASDAQ:FB) stock hit another record high of $136.12 on February 22, and investors are expecting the stock to post new highs.
FB stock is up almost 18% in the year-to-date as compared to the S&P 500 Index, which is up six percent in the same time period. What is it that keeps the Facebook stock juggernaut rolling?
First, it is the phenomenal reach that the social network has across the globe. With a formidable number of users that is about to reach almost two billion, Facebook Inc is one of the favorites of advertisers; the other one being Google parent Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL).
Facebook is apparently in discussions with Major League Baseball to live stream one game per week during the upcoming season. Sports content is important, as this is one event that people love to watch live. Given the global reach of the social networking giant, there is tremendous opportunity in live streaming a wide range of sports events. Facebook stock will likely ride high on this wave. (Source: “Exclusive: Facebook in talks to live stream one MLB game per week – sources,” Reuters, February 21, 2017.)
Early this month, Facebook had also announced the launch of a television app that would help it compete for TV ad dollars. The new app would allow users to stream videos in their news feed through set-top boxes such as “Apple TV” by Apple Inc. (NASDAQ:AAPL) and “Amazon Fire TV” by Amazon.com, Inc. (NASDAQ:AMZN). (Source: “Facebook Announces Launch of Television App,” The Wall Street Journal, February 14, 2017.)
FB shares will also get a boost as Facebook is close to reaching two billion monthly active users by the middle of this year. Together with the company’s “video-first” strategy, Facebook would likely be one of the most lucrative platforms for advertisers.