Is Facebook Stock Capable Of Being Stable On A Long Term Basis?

The social media company has shown great strengths on the index so far and analysts believe this trend will continue for some more time for the giant.

Facebook Inc has carried out a great business from the world of social media and is without argument the largest media giant currently working in the industry. The media firm has been generating high amounts of revenue for quite some time now, and analysts in the industry are constantly looking for weaknesses and strengths that the company can further ride on to maintain its high position in the market. The growth that the social networking giant has been showing for the past couple of years has turned out to be not only commendable, but also very impressive. However, investors in the firm have been raising concerns regarding the long term potential the media company could be showing in the future and where and how it could fall on the stocks. Analysts, on the other hand, have come out to be highly bullish about the Facebook stock and believe that there is hardly any reason for the investors to worry about the growth the media company has been enjoying for some time as it is expected to go on for some more time now. As for the stocks, the networking company has shown growth at such a fast pace that it has left no space for rivals to stand beside the firm where the revenue generation is concerned. As compared to the last year’s revenue, the current year of the financial calendar saw the social media platform to be making a growth of around 38 percent revenue increase which is not only a surprising factor, but it also shows that under Mark Zuckerberg’s guidance the company is sure to reach some more places in future. The stock of the company has had the most positive impact by the increasing number of active users and currently, the total number has come around to a colossal 1.49 billion. According to the concerns which are seen to be getting raised by the investors, the fact that at some point in time the networking giant might stop getting more active users is somewhat troubling the investing party. However, it should also be taken into consideration that the tech giant has decided to step into the ad business on the social media which is to raise double the revenue than it is already receiving. The social media networking industry is working on ad spend worth a massive $25 billion on the current basis, but news suggests that this is going to change into double the amount coming around at $41 billion in the next two years alone.