Analysts At Raymond James Believe Instagram Can Help Facebook Grow Further

The social media company is expected to raise massive amounts of revenue from Instagram's ad platform in the coming months, according to analysts.

Facebook Inc has been under close inspection of analysts for quite some time since the social media company is always carrying out activities to bring about positive changes in the firm. Recently, analysts at Raymond James carried out a research on the stock and business activities of the media firm and resulted in suggesting an ‘outperform’ rating to the firm. The social media giant has also managed to score a price tag of $90 by the equity firm analysts. The social networking platform has recently announced that it will be using Instagram as an enhanced advertising platform, something that it was not doing before.

A few days ago, Facebook expressed its interest in expanding its advertising business to Instagram as well and discussed the possibilities of making the platform an easier one for the companies who wish to advertise on the app. Raymond James analysts are of the opinion that through the newly found advertising platform, Facebook sales can shoot up to no end and it would be advisable for the firm to carry on with its plans to make things work in this regard. If all goes according to plan, then it has been speculated that the social media giant will be able to raise huge amounts of revenue from the platform in the coming months, as it did in 2013.

Instagram is Facebook’s recent acquisition which was first met with criticism from analysts but later on, keeping in mind the increasing active users on the app, the analysts changed their opinions and started seeing it as another way through which the firm can boost revenue generation. The social networking giant has also emerged to have great plans where it wishes to cash out fame that the photo sharing app has been receiving over the period of time. It is also to be believed that the increasing fame of the app is going to attract all the more advertisers towards it.

From the announcement that was made by Facebook regarding the expansion of Instagram where it discussed the process of making it a platform for advertisers, analysts have become quite bullish about the perspective of the media company widening its position in the advertisement industry, which is why the ratings have been notably increased on the price targets.

Raymond James has shown its expectation from Instagram to grow to over a $500 million by the end of the current year. Furthermore, the revenue is still expected to increase in 2016 to $1.1 billion and in 2017, it is expected to reach a mind-boggling $2 billion on a yearly basis.

Facebook Ad To Play A Significant Role In The Upcoming Elections of 2016

The social media giant has a strong user base that can be used in a positive way by political figures to carry out their campaign successfully.

In the upcoming elections that are going to take place in 2016, Facebook and Twitter are in the line to help with the promotions in the best possible way. Even though analysts have been constantly talking about how both the social media giants can end up helping the presidential campaign but till now, there has been no deal signed yet between the firms and any political figure or party.

Recently, a research took place through a public poll at the Pew Research Institute which showed that both the media companies have a massive potential to reach out to the audience at a very large scale. Analysts believe that this is going to help the political figures and parties to spend quite a lot of their money on both of these companies and the ad that are shown on them in order to increase their fan base.

Keeping in mind the presidential campaign that helped Barack Obama to win the last elections in 2012 was mostly run on the social networking platform, Facebook, the analysts believe that this is an indication that should be taken in the positive manner by the analysts. From the results of the recent poll that was carried out, it was seen that most of the people on the social media on the social media are young and have quite a significant effect on them over whatever that goes on the social media platform.

Quite a massive number of voters were seen to receive all the information on the elections through the social media company’s website which shows that in the coming time, this is going to prove as a more useful platform than it was three years ago. Even though Twitter has not been deemed as huge as Mark Zuckerberg’s company, it has sure made quite an impact too which has made analysts believe that it has the potential to change the minds of users as well.

The poll that was conducted by the Pew Institute showed that most of the people prefer getting their daily news from the social media websites and have relatively lessened watching TV. The results that emerged after the poll showed that around 61 percent people relied on Facebook to get the daily news whereas their TV and cable consumption was quite low, as only 37 percent people turned out to be receiving their daily news from the cable.

Even though Twitter still has a long way to go to be as huge as Facebook, analysts believe that it is still capable of carrying out the news in a much faster way and can prove to be quite a dominant news carrier in the future.