Facebook Inc: Facebook Stock Has More Room to Run
More Upside for FB Stock?
Facebook Inc (NASDAQ:FB) stock seems to be the most appealing candidate for investors looking for a growth name among the market of large-cap tech firms.
The company’s metrics from its second quarter of 2016 and recent years outshine many of its closest competitors and other flagship brands in the tech sector. Its most recent earnings report showed FB stock exceeding analysts’ expectations yet again. Mark Zuckerberg and his fellow executives also provided some forward-looking statements explaining how Facebook will grow in the near.
Facebook stock has been outperforming leading brands in the tech sector for some time now. During 2Q2016, Facebook added 60 million customers, 20-times more than the number of Internet users joining Twitter. Facebook’s 55.5% five-year sales growth and 59.2% quarter-over-quarter sales growth trumped several industry-leading tech stocks, including Intel,Google, Apple, Cisco, and Microsoft. As well, Facebook’s 18.7% capital appreciation in 2016 is far ahead of all of the aforementioned firms, with Cisco being the only other stock gaining more than 3.5% since the New Year.
As of 2Q2016, Facebook stock has only missed exceeding analysts’ expectations one of 18 times since the date of its IPO. Total revenue increased by 59% year-over-year to $6.44 billion, while Facebook’s net income still totaled $2.05 billion. (Source: “Takeaways from Apple, Facebook and Google’s latest earnings – Kapko,” CIO, July 29, 2016.)
Reports from this most recent quarter counted 1.1 billion people using Facebook every day and 1.7 billion people accessing the web site on a monthly basis. Facebook now has more than one billion mobile users active daily and exceeded $5.0 billion in mobile ad revenue during the second quarter. Mobile ad revenue now accounts for nearly 85% of the firm’s total advertising sales. (Source: “Facebook Puts Google on Notice in Search Advertising (FB, GOOG) – Fuscaldo,” Investopedia, July 28, 2016.)
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