Facebook’s monster quarter
As mobile ad revenue soars, so does the social network.
Speaking of those analysts, no fewer than eight investment firms raised their target price on Facebook’s stock. Mobile advertising, which basically didn’t exist a year ago, now makes up 41% of Facebook’s ad revenue.
However, Motley Fool analyst David Hanson says investors looking for the “next big thing” from Facebook shouldn’t consider it to be mobile ads. Hanson believes the long-term bullish argument for Facebook investors remains what the company is capable of given its talent and cash in the bank.
While the stock has a lofty valuation, no one should be betting against CEO Mark Zuckerberg and his team. In addition to Facebook’s main platform, the company recently acquired Instagram, a photo-sharing service.
As Facebook moves forward, it will be increasingly important for Zuckerberg and team to develop new ways to increase revenue while not sacrificing the use experience. Despite not yet returning to levels reached shortly after its IPO, shares of Facebook are inching closer to the milestone of a $100 billion market capitalization.
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