Facebook, Inc. Common Stock (NASDAQ: FB)
Facebook is having an incredible start to today’s trading session, and for good reason. The company recently released data with regard to Instagram, proving that the acquisition was well worth while. Today, we’ll talk about the data that was released, how the market reacted to the news, and what we can expect to see from FB stock moving forward.
FB Gains On Instagram Data
Over the years, we have seen quite a bit from Facebook when it comes to acquisitions. In fact, it’s first big acquisition was the acquisition of Instagram. This happened back in 2012, when the company paid $1 billion to own the image based social network.
Since FB acquired Instagram, we’ve seen incredible growth out of the social network, and that growth continues. Early this morning, the company announced that Instagram now boasts more than 500 million users and counting. This is absolutely incredible, considering that in September, the image based social network only had a total of about 400 million users.
The company also said that more than 300 million people are using the app daily, which is an incredible number when it comes to daily active users. Moreover, another bit of information that was released showed that more than 80% of Instagram users are actually outside of the United States.
The fact that Instagram is doing so well is leading many analysts to expect higher ad revenue. In fact, the research firm known as eMarketer is expecting that Instagram alone will generate around $1.5 billion in advertising revenue this year.
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time there is positive news released that surrounds a publicly traded company, we can expect to see gains in the value of the stock associated with that company. The news that was released today surrounding FB was overwhelmingly positive. So naturally, we’re seeing gains in the value of the stock today. Currently (11:41), Facebook stock is trading at $114.42 per share after a gain of $1.06 per share or 0.93% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from FB. The reality is that the company did a great thing when it acquired Instagram, a website that has paid for itsel and will continue to lead to gains.
Outside of Instagram however, I’m still incredibly bullish on the stock. The truth is that FB has found a way not only to create a social network, but to turn that social network into a way of life for the masses. Today, consumers not only socialize, but they play games, shop, and digest content, all on the social network. With a constant focus on improving user experience and building a larger network, Facebook is likely to continue climbing in value from here.
What Do You Think?
Where do you think FB is headed and why? Let us know your opinion in the comments below!