Facebook Stock Soars - GCreport.com

Facebook Stock Soars

For the past 10 years Facebook has been one of the most influential companies in the world. It started as a small social media platform but quickly grew to...

For the past 10 years Facebook has been one of the most influential companies in the world. It started as a small social media platform but quickly grew to have over 1 billion users. Today, it is a very profitable company due to the amount of daily active users and has also become a darling on Wall Street due to the fact that it continues to beat expectations. While some are beginning to expect that Facebook growth will eventually slow down, the most recently quarterly performance seems to say otherwise (http://www.cnbc.com/2017/07/27/facebook-hits-new-all-time-high-as-wall-street-gushes-over-social-juggernauts-ad-pricing-power.html).

Earlier this week, Facebook released its earnings report for the second quarter of 2017. After the release of the earnings, shares of Facebook quickly grew a lot in value. The company excited investors when they released that their ad sales had increased by 25% year over year. This shows that the company is continuing to monetize the website, which is making investors excited about the future.

Another factor that is exciting the investors is that the company is now looking for new ways to monetize the company without impacting user experience. The CEO of Facebook, Mark Zuckerberg, has stated that they are now looking at their recent acquisitions, including some popular direct messaging apps, in an effort to find ways to increase ad revenue. They are reportedly already working on these new income producing methods, which could go into effect by the end of the year. This could have a huge impact on the company’s ability to increase ad revenue going forward.

Due to the continued profitability of Facebook, stock of the company ended up reaching an all time high of $175 per high. Overall, the stock is up over 40% in 2017 alone. While this is in a good year for the stock market overall, it has still outperformed the market by a considerable margin. Stock analysts now see even better things in the future for Facebook. After the earnings and report, some have increased their price targets for more than $205 per share.

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