Facebook TV Can Push FB Stock Facebook Inc (NASDAQ:(FB) is a rare gem in the technology world. Its brilliant “economic moat”

How Facebook TV Can Push FB Stock Over $200

|Chart | Calendar   | TRADE NOW | FORCAST | facebook

New Advertising Initiative Is Great News for Facebook Stock

Facebook TV Can Push FB Stock Facebook Inc (NASDAQ:<span data-recalc-dims=(FB) is a rare gem in the technology world. Its brilliant “economic moat”" width="300" height="188" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/05/Facebook-Stock-300x188-Small.jpg?resize=300%2C188 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/05/Facebook-Stock-300x188-Small.jpg?resize=464%2C290 464w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/05/Facebook-Stock-300x188-Small.jpg?w=766 766w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESTORS  Facebook TV Can Push FB Stock Facebook Inc (NASDAQ:(FB) is a rare gem in the technology world. Its brilliant “economic moat” has its competitors losing sleep. It’s fascinating how CEO Mark Zuckerberg’s peculiar ways of doing business are continuing to bolster this moat.

Zuckerberg has undertaken another big initiative which hints at further upside potential for FB stock. It could be great folly to not call Facebook stock the best technology stock in 2017.

It’s not a physical TV (although we might eventually see one; after all, Facebook is already making technology hardware); it’s a television-like entertainment streaming service.

Facebook TV is a Game Changer for FB Stock

A television streaming service may sound like an odd project for a technology company but, when you see an e-commerce company (Amazon.com, Inc. (NASDAQ:(AMZN)) and an online search engine company (Google, which is owned by Alphabet Inc (NASDAQ:(GOOG)) making money off streaming, the pieces start falling into place.



Facebook TV Can Push FB Stock

You see, for its revenue base to keep growing, Facebook must keep adding new features to its platforms, even if that means blatantly copying peers. And Zuckerberg is not too shy to admit that this is exactly what he’s doing now.

No, I’m not talking about Facebook’s attempts at cloning archrival Snap Inc. (NYSE:(SNAP). That is history, not news. I’m talking about Facebook’s latest bid to imitate the big daddies of the tech world, Amazon and Alphabet.

Now Facebook’s plan is to stream two-tiered video content, which will be created by third parties but will mostly be owned by Facebook. In turn, Facebook will split the advertising revenue with the creators.

Here’s what the two tiers will look like.

  1. 20- to 30-minute webisodes that will be owned by Facebook.
  2. 5- to 10-minute videos, that may or may not be owned by Facebook.

Both kinds of videos will be running advertisements. (Source: “Exclusive: Facebook signs BuzzFeed, Vox, others for original video shows – sources”, Reuters, May 24, 2017.)

Bottom Line on Facebook Stock

My friends, the reality is that people are giving more screen time to their smartphones today than they are to their television sets. Facebook has realized that there’s a lot of money to be made off this trend. Also, it’s easier for the company to pull it off because Facebook has the unique edge of having roughly two billion members of the world’s population already on its platform.

Like up on FACEBOOK


logo

Market quotes are powered by
TradingView.com



Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




BUZ INVESTORS Market Open U.S. missile attack on Syria puts markets on edge. The order of the missile attack on Syria

Early movers 4/5 : FB, TSLA, ABC, LB, CHD, REGN, AIG, M & more

Chart | Calendar   | TRADE NOW | FORCAST | STOCKS

Early movers: FB, TSLA, ABC, LB, CHD, REGN, AIG, M & more

BUZ INVESTORS Early movers 4/5 which companies are making headlines before the bell

BUZ INVESTORS Early movers 4/5  which companies are making headlines before the bell

Facebook Reports First Quarter 2017 Results

First Quarter 2017 Operational and Other Financial Highlights

  • Daily active users (DAUs) – DAUs were 1.28 billion on average for March 2017, an increase of 18% year-over-year.
  • Monthly active users (MAUs) – MAUs were 1.94 billion as of March 31, 2017, an increase of 17% year-over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 85% of advertising revenue for the first quarter of 2017, up from approximately 82% of advertising revenue in the first quarter of 2016.
  • Capital expenditures – Capital expenditures for the first quarter of 2017 were $1.27 billion.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $32.31 billion at the end of the first quarter of 2017.
  • Headcount – Headcount was 18,770 as of March 31, 2017, an increase of 38% year-over-year.




+

Early movers 4/5

>>>TRADE NOW<<<

Tesla First Quarter 2017 Update

Record vehicle production, deliveries and revenue in Q1
• Model 3 on track for initial production in July
• Completed transition to internally developed Autopilot software
• Q1 Automotive gross margin improved to 27.4% (GAAP) and 27.8% (non-GAAP)
• $4.0 billion of cash on hand heading into Q2
• Q1 GAAP and Non-GAAP loss from operations improved from Q4

AmerisourceBergen beats by $0.09, misses on revenue

Second Quarter GAAP Quarterly Results

  • Revenue: In the second quarter of fiscal 2017, revenue was $37.1 billion, up 4.1 percent compared to the same quarter in the previous fiscal year, reflecting a 4.0 percent increase in Pharmaceutical Distribution Services revenue and a 6.0 percent increase in revenue within Other.
  • Gross Profit: Gross profit in the fiscal 2017 second quarter was $1.3 billion, a 16.8 percent increase over the same period in the previous fiscal year, primarily driven by a LIFO credit of $86.5 million in the current year quarter versus a LIFO expense charge of $92.4 million in the prior year period. The change in LIFO is driven by lower expected brand inflation and greater generic deflation for fiscal year 2017 in comparison to those expectations at March 31, 2016 for the prior fiscal year. Gross profit as a percentage of revenue was 3.38 percent, an increase of 37 basis points from the prior year quarter.
  • Operating Expenses: In the second quarter of fiscal 2017, operating expenses were $631 million, compared to $125 million in the same period last fiscal year. Prior year’s operating expenses included $504 million of Warrants income. Distribution, selling, and administrative expenses of $522 million were relatively flat compared to the prior year period.
  • Operating Income: In the fiscal 2017 second quarter, operating income was $625 million versus $950 million in the prior year period. The decline in operating income was driven by the $504 million of Warrants income in the prior year quarter.
  • Interest Expense, Net: In the fiscal 2017 second quarter, net interest expense of $37 million was up 3.7 percent versus the prior year quarter.
  • Tax Rate: The effective tax rate for the second quarter of fiscal 2017 was 30.6 percent versus 34.1 percent in the prior year second quarter. Our tax rate was approximately 2.0 percent lower than expected due primarily to a greater than anticipated benefit from share-based compensation resulting from a high number of stock option exercises in the current quarter, which was partially offset by certain unfavorable discrete tax items.
  • Diluted Earnings Per Share: Diluted earnings per share was down 30.6 percent to $1.86 in the second quarter of fiscal year 2017 compared to $2.68 in the previous fiscal year’s second quarter, driven primarily by the decrease in net income.
  • Diluted Shares Outstanding: Diluted weighted average shares outstanding for the second quarter of fiscal year 2017 were 221.2 million, a 1.9 percent decline versus the prior fiscal year second quarter due to share repurchases, net of stock option exercises.

Comparable sales fall at L Brands

L Brands (NYSE:LB) reports comparable sales fell 5% in April. The exit of swim of apparel categories by the company had a negative impact of six percentage points.

Total sales were down 2% to $719.6M.

L Brands expects to report Q1 EPS of $0.30.

LB +1.15% premarket to $53.72.

Church & Dwight Reports Q1 Reported EPS of $0.51; Adjusted EPS of $0.52 Exceeds Q1 Outlook

2017 First Quarter Results 2017 Full Year Outlook

  • Reported sales growth +3.3%; Organic +2.3%
  • Reported and Organic sales growth of approximately +3%
  • Reported Gross Margin +90 bps; Adjusted +110 bps
  • Reported Gross Margin +60 bps; Adjusted +40 bps
  • Reported Operating Margin +130 bps; Adjusted +170 bps
  • Reported EPS $1.75-$1.77 flat; Adjusted +8.5%
  • Reported EPS growth of 18.6%; Adjusted 20.9%

Regeneron Pharmaceuticals, Inc. (REGN)

– First quarter 2017 EYLEA global net sales(1) increased 12% to $1.34 billion versus first quarter 2016

– FDA approved Dupixent® (dupilumab) Injection for adults with moderate-to-severe atopic dermatitis

– Positive Phase 2 results in dupilumab eosinophilic esophagitis study

– Biologics License Application for Kevzara® (sarilumab) accepted with a target action date of May 22, 2017

AIG Reports First Quarter 2017 Results

FIRST QUARTER FINANCIAL SUMMARY*

Three Months Ended

March 31,

($ in millions, except per share amounts)  2017   2016 Net income (loss)$1,185 $(183)Net income (loss) per diluted share (a)$1.18$(0.16)After-tax operating income$1,367$765After-tax operating income per diluted share (a)$1.36$0.64Return on equity6.3

%

 

(0.8)%AIG Consolidated:

 

Adjusted return on equity9.6

%

 

4.5%Normalized return on equity (b)8.1

%

 

8.3%Core:Adjusted return on attributed equity – Core10.2

%

 

6.8%Normalized return on attributed equity – Core (b)8.7

%

 

9.0%Book value per common share, excluding accumulated other comprehensive income  $74.58  $73.40

Macy’s and Tailored Brands to end partnership

Macy’s (NYSE:M) and Tailored Brands (NYSE:TLRD) plan to wind down operations under their tuxedo rental joint partnership first established last June.

The pairing didn’t generate the level of revenue anticipated by the retailers.

The Tuxedo Shops at Macy’s will continue to take new reservations until June 1.

Tailored Brands plans to take charges of about $17M to account for the costs of winding down the JV.

 

 




United States Crude Oil Stocks Change | Data | Chart | Calendar

Chart | Calendar   | TRADE NOW | CRUDE OIL United States Crude Oil Stocks Change | Data | Chart | Calendar source: tradingeconomics.com BUZ INVESTORS Crude Oil Stocks Change Stocks of crude oil in the United States fell by 0.930 million barrels in the week ended April 28th, 2017, following a 3.641 million decrease in the previous […]

Triple-Digit Upside From These Top Lithium Stocks

Chart | Calendar   | TRADE NOW | Lithium Are Lithium Stocks Set for Success? BUZ INVESTORS   Top Lithium Stocks  The best part of the tech sector, especially when compared to other industries, is that you get to invest on the cusp of tomorrow before everybody else. The ability to jump in on products that will shape […]

Japanese Stocks Finish At 6-Week High On Monday

Chart | Calendar   | TRADE NOW | USDJPY Japan NIKKEI 225 Stock Market Index | Data | Chart | Calendar BUZ INVESTORS  Japanese Stocks Finish At 6-Week High Tokyo’s Nikkei 225 edged up 113.8 points, or 0.6 percent, to 19,310.5 on Monday May 1 amid upbeat earnings figures and a recovering US dollar. It was the highest […]

Buz Investors FB Stock Prediction (NASDAQ:FB) is no longer the tiny startup looking to “connect the world.” It is a giant corporation with myriad concerns, interests, and investments.

FB Stock Prediction: How High Can Facebook Reach in 2017?

FB Stock Predictions Are a Dime a Dozen

Buz Investors FB Stock Prediction <span data-recalc-dims=(NASDAQ:FB) is no longer the tiny startup looking to “connect the world.” It is a giant corporation with myriad concerns, interests, and investments. " width="300" height="182" />

Buz Investors FB Stock Prediction (NASDAQ:FB) is no longer the tiny startup looking to “connect the world.” It is a giant corporation with myriad concerns, interests, and investments. Recognizing that Facebook is powerful is the first step toward setting a reasonable FB stock price target. Otherwise, your FB stock predictions are going to fall way short of the company’s true performance.

We’re seeing this trend replicate across the stock market. Big companies are getting bigger, stronger, and more cash-rich while small companies are getting bought over or pushed out of the market.



OTHER STORIES BUZ TRADERS FOLLOW

FB Stock Prediction

According to recent academic research, more than 75% of U.S. industries saw an increase in the concentration of market power. (Grullon, Gustavo, Yelena Larkin, and Roni Michaely, “Are US Industries Becoming More Concentrated?” February 23, 2017.)

This increased market power could lead to another year of triple-digit gains for Facebook shares. We would not be surprised if the FB stock price continued its astounding growth pattern through the remainder of 2017. The stock could easily reach $200.00 to $250.00 before the year is out.

Snap eventually held an IPO in early March 2017. It premiered on the New York Stock Exchange (NYSE) under the ticker symbol “SNAP” and swung dramatically in price. In the first few days of publicly trading, SNAP stock jumped more than 50%. Then it crashed.

Should You Invest in FB Stock in 2017?

Obviously that decision is up to you. But if you’re wondering about the Facebook stock prediction, if Facebook stock can really deliver more gains to shareholders, please stop right now. Of course it can!

Online advertising spending is expected to grow rapidly between now and 2020. Facebook owns four of the biggest pipelines for those ads, meaning it commands the entire market. It has extraordinary influence over prices and terms.



Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




FB Stock on a Record High on These Three Factors

Facebook Stock Gains 18% in the Year and Is Poised to Go Higher

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).




 

Other Stories Buz Traders Follow

 Record High

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.

Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )

Buz Investors FB Stock Higher (NASDAQ:FB) stock is on a roll, and is poised to go higher as the social media company appears to be competing in a space with almost no competition.

Facebook’s Strong Competitive Edge to Push $FB Stock Higher

Facebook Stock to Keep Surging on Weak Competition

Buz Investors FB Stock Higher <span data-recalc-dims=(NASDAQ:FB) stock is on a roll, and is poised to go higher as the social media company appears to be competing in a space with almost no competition." width="300" height="200" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/02/FB-Stock-300x200-Small.jpg?resize=300%2C200 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/02/FB-Stock-300x200-Small.jpg?w=720 720w" sizes="(max-width: 300px) 100vw, 300px" />

Buz Investors FB Stock Higher  (NASDAQ:FB) stock is on a roll, and is poised to go higher as the social media company appears to be competing in a space with almost no competition.

FB stock has already gained 16% year-to-date, as compared to the six-percent gains posted by the S&P 500 index. Facebook stock closed at $133.72 on Tuesday.

While CEO Mark Zuckerberg released his 6,000-word manifesto last week, his company was busy devising ways to trounce its rivals. Facebook has almost 1.9 billion users on its platform, and the company wants more users and more of their attention.



Other Stories Buz Traders Follow

FB Stock Higher

Meanwhile, Facebook has added the “Status” feature to its other popular property, “WhatsApp.” News came in on Monday that WhatsApp would get a new tool that would let users share videos, photos, and animated GIFs, all of which will disappear after 24 hours.

Similar to “Snapchat Stories” and “Instagram Stories,” WhatsApp’s ephemeral Status posts can be edited with text, emojis, and finger drawings. The users will have the option to send Status postings to all of their contacts or to specific ones. (Source: “WhatsApp Adds Snapchat-Like Story Feature Called Status,” The Wall Street Journal, February 20, 2017.)

Last week, Facebook had also announced its entry into the job recruitment market. The social networking giant said that employers could directly post jobs to their “Page” and users will be able to apply for those jobs on Facebook. The company hopes that the employers and applicants can then continue their communication through “Messenger.” (Source: “Facebook is rolling out job postings and applications,” Recode, February 15, 2017.)

By not charging any fee from employers for job postings, Facebook is setting up a fight with a more established player in the field, LinkedIn Corp (NYSE:LNKD). Recruiters have to pay LinkedIn for posting and promoting jobs on its platform. In the short term, only a certain section of users may use this new Facebook feature but, in the long run, it could turn out to be a serious competitor to LinkedIn.

Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




Buz Investors Sell-Off Is Brewing (NASDAQ:FB) reported earnings after the close on February 1, 2017. At first glance, all seemed to be peachy, as it beat on both the top and bottom lines. Investors applauded the earnings release and sent FB stock higher by three percent, to a new-all time high of $137.25

$FB Stock Dire Consequences

THIS Is Why a Sell-Off Is Brewing in Facebook Stock

THIS Is Why a Sell-Off Is Brewing in Facebook Stock

Buz Investors Sell-Off Is Brewing (NASDAQ:FB) reported earnings after the close on February 1, 2017. At first glance, all seemed to be peachy, as it beat on both the top and bottom lines.

Investors applauded the earnings release and sent FB stock higher by three percent, to a new-all time high of $137.25 in after-hours trading.

The following day, the initial bullish reactions to earnings quickly faded, and Facebook stock stalled, closing lower for the day. This price action didn’t completely catch me off guard because, in my earlier publication, “Facebook Stock Chart Suggests Caution Is Warranted,” I outlined that such a scenario could potentially play out.



Other Stories Buz Traders Follow

Sell-Off Is Brewing

 

When the stock exited the rising wedge to the downside, it implied that the path of least resistance was lower, and that the price was expected to retreat to the lowest point from which the pattern began. This implies that Facebook stock was eventually going to test the August 2015 lows at $72.00.

That idea quickly started to crumble when the consolidation pattern highlighted in purple broke to the upside and suggested that FB stock was due to trend higher. It was the resolution of this pattern that left me with little choice but to retract my bearish view on Facebook stock and assume a neutral stance.

I didn’t assume a bullish stance because there were still bearish ramifications from the rising wedge. There was the possibility that the price was attempting to backtest the pattern from underneath. A backtest would serve to confirm the bearish outlook suggested by the pattern, and a sell-off would likely ensue after it was successfully completed.



Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




Buz investors FB Stock Has More Room (NASDAQ:FB) reported fourth-quarter and full-year results Wednesday and the numbers beat expectations across the board.

$FB Stock Has More Room to Grow

Facebook Inc (NASDAQ:FB) Results Lift FB Stock

Buz investors FB Stock Has More Room <span data-recalc-dims=(NASDAQ:FB) reported fourth-quarter and full-year results Wednesday and the numbers beat expectations across the board." width="300" height="225" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/02/DRYS-Stock-300x225-Small.jpg?resize=300%2C225 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/02/DRYS-Stock-300x225-Small.jpg?resize=360%2C270 360w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/02/DRYS-Stock-300x225-Small.jpg?w=640 640w" sizes="(max-width: 300px) 100vw, 300px" />

Buz investors FB Stock Has More Room (NASDAQ:FB) reported fourth-quarter and full-year results Wednesday and the numbers beat expectations across the board. The content powerhouse announced its Q4 results, which were spectacular. Although the company issued a cautious outlook, FB stock closed at a high of $133.23.

Revenues touched $8.8 billion in the fourth quarter of 2016, a jump of 51% year-over-year as mobile advertising soared. The mobile advertising revenue represented approximately 84% of advertising revenue for the fourth quarter of 2016, up from about 80% of revenue from advertising in Q4 of 2015.



Other Stories Buz Traders Follow

FB Stock Has More Room

 

In the earnings call, the company management gave an overview of the future direction for Facebook Inc.

In the earnings call, Mark Zuckerberg was emphatic about the company’s video ambitions. He said that video is the “megatrend,” on par with mobile. That is why Facebook will keep putting video first across its family of apps and making it simpler for people to capture and share video in new ways. This strategy has already starting paying off for the company and is likely to put FB stock ahead of others.

The company has added a tab at the bottom of the “Facebook” app with top videos and recommendations. This makes it easier for users to find and watch videos. Facebook is also focused on improving live video as more and more people use it. The social networking giant is experimenting with live 360-degree video, audio-only live for people with slower connections, as well as live face masks and more camera effects.

Talking about another pillar of growth—Instagram—Zuckerberg highlighted the strong growth and engagement on Instagram, which recently passed 400-million daily active users. “Instagram Stories” reached 150-million daily actives just five months after the launch and the company has added new features like “Boomerang” and “Live Stories.
Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




FB-Stock1-300x200.resized

FB Stock Sitting in No Man’s Land

Facebook Stock Chart Suggests Caution Is Warranted

FB-Stock1-300x200.resized

Buz Investors  No Man’s Land  Facebook Inc (NASDAQ:FB) stock, I had to step away from a previous bearish view and assume a neutral stance because the price action on the FB stock chart suggested that higher prices were likely in the interim. Even though bearish signals continued to mount on Facebook stock, stepping aside was the prudent course of action.



Other Stories Buz Traders Follow

No Man’s Land

The pattern where my original bearish view was derived from is still in play. If FB stock stalls at the current levels, it could indicate that my previous bearish view was not ill-founded.

bearish rising wedge is a technical pattern

The rising wedge was completed in November, when stock exited the pattern in a downward direction following a disappointing earnings announcement. This event is highlighted as a breakdown on the FB stock chart above, and this was where my bearish view on Facebook stock was created.

A completed rising wedge, where price exits in a downward direction, implies bearish consequences. The theory surrounding these patterns is that the price will retreat to the lowest point from which the pattern began to develop. This implies that Facebook stock is set to test the August 2015 lows at $72.00.

Over the next two months, the stock traded within a range (highlighted in purple) that at first glance, looked like a continuation pattern developing. But when price exited the pattern in an upward direction, it confirmed that this trading range was in fact a reversal pattern. The confirmation of a reversal pattern indicated that higher prices were likely, and this is the reason I had to step away from my bearish view and assume a neutral stance.


Tech Stocks ( GOOG)   (MSFT ) ( AAPL ) (BBRY ) ( gopro )  ( WDC )




FB Stock: Will the Oculus Lawsuit Damage Facebook Stock (FB)? Buz Investors Oculus Lawsuit Facebook Inc (NASDAQ:FB) is currently embroiled in a strange little lawsuit that could undermine its huge investment in Oculus VR. But in order to figure out what this case could mean for Facebook stock (FB), we have to dig into the nitty-gritty details. Companies are forced to reveal all sorts of sensitive information during these types of lawsuits, so markets tend to put a spotlight on them.In this case, video game publisher ZeniMax Media Inc. claims that Facebook knowingly poached its employees to enhance Oculus products. These employees supposedly violated their contracts with ZeniMax

$FB Stock: Will the Oculus Lawsuit Damage Facebook Stock (FB)?

FB Stock: Will the Oculus Lawsuit Damage Facebook Stock (FB)?

  • Buz Investors Oculus Lawsuit Facebook Inc (NASDAQ:FB) is currently embroiled in a strange little lawsuit that could undermine its huge investment in Oculus VR. But in order to figure out what this case could mean for Facebook stock (FB), we have to dig into the nitty-gritty details.
  • Companies are forced to reveal all sorts of sensitive information during these types of lawsuits, so markets tend to put a spotlight on them.In this case,
  • video game publisher ZeniMax Media Inc. claims that Facebook knowingly poached its employees to enhance Oculus products. These employees supposedly violated their contracts with ZeniMax

Oculus Lawsuit

FB Stock: Will the Oculus Lawsuit Damage Facebook Stock <span data-recalc-dims=(FB)? Buz Investors Oculus Lawsuit Facebook Inc (NASDAQ:FB) is currently embroiled in a strange little lawsuit that could undermine its huge investment in Oculus VR. But in order to figure out what this case could mean for Facebook stock (FB), we have to dig into the nitty-gritty details. Companies are forced to reveal all sorts of sensitive information during these types of lawsuits, so markets tend to put a spotlight on them.In this case, video game publisher ZeniMax Media Inc. claims that Facebook knowingly poached its employees to enhance Oculus products. These employees supposedly violated their contracts with ZeniMax" width="300" height="199" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/01/facebook-stock-300x199.resized.jpg?resize=300%2C199 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/01/facebook-stock-300x199.resized.jpg?w=640 640w" sizes="(max-width: 300px) 100vw, 300px" />

Oculus Lawsuit  After all, the virtual reality tech that Facebook acquired through Oculus is key to FB stock’s growth strategy. No one believes that advertising revenues can fuel Facebook stock forever—that’s where Oculus VR comes in. It was the first big hardware play for Facebook.

Mark Zuckerberg personally flew out to demo the virtual reality gear in 2014. He was so impressed with the potential of VR that he offered Oculus $2.0 billion. Or so we believed.

Part of the testimony in this lawsuit revealed that there was an extra $1.0 billion worth of bonuses and incentives.

Other Stories Buz Traders Follow

Oculus Lawsuit

 

To be perfectly clear, I know nothing about that. Very few people know the intimate details of what happened there; what information was shared and what wasn’t. But what I do know, is that Facebook denies knowing anything about the contract. It says everything was above board.

ZeniMax’s response to that claim is incredibly important. It says Facebook should have known about the contracts. The company’s lawyer, Tony Sammi, brought CEO Mark Zuckerberg to give testimony. Sammi asked him how quickly the deal was put together.

According to Zuckerberg, the entire vetting process took place in the span of a weekend.