The social media giant is expected to turn out to be stronger on the stock index in the coming time, given the number of ventures it is currently carrying out successfully.
Facebook Inc has recently been covered by analysts who seem to believe that the firm has a strong chance of staying strong on the stock index in the near future. The success that the social media platform has been witnessing since the past couple of years has groped the attention of its rivals in the industry which are still at an arm’s length to reach the position the media firm has managed to obtain.
Following the successful first quarter of 2015, the networking giant has been receiving many positive returns in the form of cash which is one of the reasons why the analysts are so bullish about its stock activities. The firm has reportedly been bringing about huge changes in its system and by turning out to be one of the most innovative firms of the media industry; it has managed to grow at an alarming rate.
Furthermore, Facebook business has made its success in the industry something that the rivals need to be reckoned with. This is being said due to the companies that it acquired recently which increased its revenue growth by a huge difference. These companies include Instagram and Whatsapp, and both the platforms have been experiencing constant growth for the past couple of years. Through the launch of the Messenger app that the media firm launched some time back, it has secured another position in the field of communication that users prefer using over any other app.
According to an analysis made by analysts at Brean Capital, it has been seen that number of smartphone apps that Facebook has so far reported to own seems to be growing more and more, and this has made the firm quite strong. The analysts also believe that currently, the Wall Street analysts are not taking into consideration the full impact the social media company is capable of making on the stock index, and it is to be believed by the analysts at Brean that the firm is being under-estimated by a mile as all the apps it owns are expected to raise quite a lot of revenue for the next quarter.
Facebook was also seen to announce a few weeks ago that it widening the ad space of Instagram, making it available for more advertisers now. This step is being taken by the analysts at Brean in quite a positive manner, as this is going to open up a space for the firm to raise even more revenue than it was before from the app. The analysts also predicted that once Whatsapp has a proper user base, the media company will find additional ways to raise revenue out of it too.
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