The Facebook Inc. (NASDAQ:FB) stocks are soaring as expected. People are buying and small public shareholders are getting rich. The critics claimed it was a fad but they were proved wrong as Facebook Inc. is here to stay and its stock continues being the hot cake that it currently is at the NASDAQ. This number one social network is not going to fail anytime soon. Business sector has embraced the importance Facebook in their marketing plan. Many businesses have reported an increase in sales after using Facebook platform to increase awareness about their product and service. Investors planning to invest this year should watch closely Facebook Inc. stocks. Big returns are expected with the current indicators showing that this company will maintain high profits in the coming future. Outlined below are reasons why Facebook Inc. stock is soaring today.
1. Its A Big World
It is a big world with a big market place filled with people who love the social network. Despite the rivalries from other competitors it has managed to rise and rise. It became a great advertising platform for many businesses. The advertising has been a great earner for them and the investors are out on the prowl. With millions of investors out there in world, stocks are bound to sell in a big way.
2. The Stocks Have Future Earning Potential
There is a high likelihood that the Facebook stocks will increase in value in the future. Investors require a guarantee of the safety of their money and Facebook has shown signs of greater success in the future. According to the publicly available financial information of the company, they have been trading up 16.5% the past week which is really quite impressive.
3. The Naysayers
There have been pundits who have come out and predicted financial doom for Facebook Inc. This was not exactly publicly received well since many investors are still the users. No one wants to hear their favorite social network is going to fail and most of the users, just out to prove the naysayers wrong ,invested in Facebook not just for the profits but to also save their seemingly “doomed” social network.
4. Their Huge Ad Revenue
Facebook Inc. focus on ads quality has opened the possibility of increasing pricing and ad load in the future. Its commitment to ad quality has contributed to 53% of its income. The huge ad revenue has contributed to its growth which has become quite an attraction to investors.
5. Good Marketing
What other company in the world has marketed its IPO like Facebook Inc. It has given its stocks great publicity worldwide, so why wouldn’t they soar? Every investor out looking for an opportunity has definitely heard of this fast growing public company selling its stocks.
6. The Introduction Of Instagram
The inclusion of instagram has led to increase in the number of Facebook users, something that has hugely contributed to its growth. With increased usability of the social network, the revenue of course increased. Its popularity increased further and the investors again noted the impressive performance.