Facebook Review and Analysis
Overview
The Covid 19 pandemic has meant an increase in e-commerce, as well as more internet usage and an upsurge in online communication, thus enhancing the relevance and importance of social media tools such as Facebook. Reliable predictions expect a further 25% growth potential in the next term and this comes to be added on last year’s trend which saw increased advertising budgets ending up in Facebook’s coffers. Thus, as the future looks equally promising as the recent past, the Facebook stocks deserves to the on the watchlist of every interested stock investor in the coming period.
By the end of the guide, you should know the following:
- A brief history of Facebook.
- Facebook stocks' historical performance.
- If Facebook stocks is a good or a bad investment.
- How to buy Facebook stocks.
- Where to buy Facebook stocks.
- Facebook stock price prediction: Where Will Facebook stock Be in the next few Years?
Fundamentals
Following its IPO in 2012, Facebook, Inc. listed on NASDAQ as FB, had a slow start, but it soon grew into one of the biggest companies globally. It is solidly on the road to becoming a $1 trillion company and after reaching record highs for its stock price, its current market cap is estimated to be more than $600 billion.
Pros and Cons of Buying Facebook stock investment
Facebook Pros and Cons
| Benefits |
Risks |
| Strong Position |
Valuation |
| Rapid Growth |
Concerns about the company’s handling of users’ privacy. |
| Dominates social networking |
|
The Benefits of Facebook stocks investment
There are several pros to purchasing the Facebook stock, the first being its consistent double-digit top line growth in recent years, with company sales rising in the billions annually. Similarly, Facebook also boasts double-digit bottom-line growth as well, which result in significant growth to net income year on year. Moreover, Facebook has also managed to keep growing its user base for every quarter, currently being used by well over 3 billion people globally.
Through Facebook.com, Instagram.com, Facebook Messenger and WhatsApp the company is undoubtedly the dominant player in social networking and its prospects look even more promising through investments in virtual reality technologies, which are set to be the newest hot trend in the field.
Things we didn't like in Facebook stocks investment
Perhaps the greatest cons of purchasing the Facebook stock is the fact that it has never payed any dividend to its shareholders, though this might change in the future. The company’s growth prospects and future profitability may be less health than its present and past performances as it is making a hard effort to invest in content moderation curbing inappropriate content such as nudity and hate speech. These attempts have already caused some controversies, while the way Facebook handles the privacy of its users is also an issue causing much contention and heated debates.
Historical performance
It is a well-known story how Facebook was started in 2004 by Harvard students Mark Zuckerberg, Eduardo Saverin, Dustin Moskovitz and Chris Hughes and was intended for use by their fellow Harvard students. However, it very soon to the other U.S. universities and in less than a year it had already spread worldwide. In fact in only 3 years, Facebook reached an impressive 100 million users and has kept growing ever since.
2012 was a landmark year for Facebook because it was then that it became the first social network to reach 1 billion users, while it was also when it went public, raising $16 billion through its IPO, where the price per share reached $38 and set Facebook’s valuation at a staggering $104 billion.
This initial success was soon hampered and the stock lost more than half of its initial valuation during the first year of trading. It took it more than another year to return above the $100 billion mark but growth was rapid since, exceeding $250 in 2015 and $500 billion in the following two years.
Facebook Stocks Future Price Forecast Predictions
Facebook shares Price Predictions
| Year |
Low |
High |
| 2021 |
$310.40 |
$325.90 |
| 2022 |
$282.57 |
$322.90 |
| 2025 |
$280.52 |
$330.81 |
* The prediction figures outline some of the Potential high and low of Facebook shares price prediction forecasts for the years 2021, 2022, and 2025 based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice.
Facebook Shares Price Prediction for the year 2021
By the end of the year 2021, using forecast and algorithmic analysis, our price prediction forecasts suggest that one Facebook share will reach an average price of $318.15, which will be an impressive 166% growth from it's current market price.
Facebook Shares Price Prediction for the year 2022
By the end of the year 2022, our price prediction forecasts suggest that one Facebook share will reach an average price of $302.735, which will be an impressive 158% growth from it's current market price.
Facebook Shares Price Prediction for the year 2025
By the end of the year 2025, our price prediction forecast suggests that one Facebook share will reach an average price of $305.665, which will be an impressive 159% growth from it's current market price.
Where Can You Buy Facebook stocks
There are several online sites and platforms where people from across the globe can buy Facebook at good exchange rates and with low or no transaction fees.
To aid your quest we have comprised a list of some of the most popular methods and platforms to buy Facebook from and your strongly advised to consult this list before making your first purchase of or investment in Facebook.
