Facebook has recently reported it’s 4th quarter earnings of 2015 (What they earned between Sept-Dec 2015). The CEO Mark Zuckerberg announced a record high of earning $5.67 Billion in revenue in a single quarter, outperforming what analyst believed would be $5.37 Billion . In English, Facebook made $30 million more than expected. Fb made more in 3 months than what Yahoo (YHOO) grosses in an entire year. It is now rumored that Facebook is on track to be an internet giant of the likes of Google (Googl). Remember when Google shares went from about $54 per share to peaking at $1000 per share? How did Fb do this ? That’s an easy question that you should know the answer to. The answer is you.
Surely you know what comes between the months of September and December Right? The Holidays. And Millenials, surely you knew that we would all snap a picture of every dish on the table for thanksgiving: showing off aunty’s mac n’ cheese, and have “my grandmom pie is better than your grandmom pie” contests on Instagram . Instagram… which is owned by Facebook. Then why didn’t you see this coming ?
Trading Stock requires the perfect blend of studying the trends, reviewing factual revenue data, and using good old fashioned common sense. Sometimes you have to tune out the spectators on Wall St. In the summer of 2012, Facebook started as an IPO at $38 a share, dropped as low as $19 and has never looked back since. Every since they figured out how to generate money that is. Fb started off with a billion users and continues to grow at a steady pace. Most of our grandparents even have a FB page now. Surely you noticed that big bold Ad on Facebook’s homepage when you log in from a desk top? Or better yet when your scrolling down your timeline, did you ever notice the ad placed right in between statuses and relevant videos? Advertisers who want to appeal to a billion users will have to pay billions of dollars. Therefore you could’ve estimated that Facebook would perform well during the holidays . Here’s Why !! There are more people than ever wanting to share there precious moments on social media. Facebook owns two of the BEST platforms including itself and Instagram. Each having there own take on direct ads bringing in revenue. During the holidays, there is less travel and more people are at home during the actual holiday itself. What do most ppl do when at home? browse the internet, read (hopefully), and shop.
TRENDS, FACTS, and Common Sense!
After Reports of Q3 (June – Aug ) earnings, Facebook was profitable. These are the facts you need. Fb shares peaked at about $110. As recent as last week 1/19/16, a share could have been bought for as low as $90. Sticking with all the facts above, it could have been inferred that $90 was a sure discount. Fb is a GIANT player and the brand continues to grow with really advanced features like Facebook Live, and Sports Stadium. This is one of the companies you would want to get in now while the going is good. Granted any moral investor should advise that no investment is guaranteed. However as in any form of business, growing your money entails risk. Rewards cannot be achieved with out assuming risk. Truth is, as a consumer, you take a risk everyday as well. When You buy an expensive item of clothing, car, house, it’s an investment and carries risk. You potentially will never see the value you’ve output again. However with the right amount of info, planning, and confidence risks can be accurately managed. Take these same risk approaches with your savings/investments. You cannot be afraid of losing while putting your best foot forward towards wealth. Before the earnings were reported 1/27/2016 at market close , the share price was at $94.45. Instantly shares soared 12% to 105.82 and is almost guaranteed to go up more.