A Few Reasons Why Facebook Is a Great Long-Term Pick

Facebook (FB) has brushed aside the forex concerns to continue boosting its earnings and touching new 52-week highs. The primary reason behind Facebook’s meteoric rise has been the success of its advertisement platform. At the present stage, Facebook is comprised of three million businesses advertising on its platform, a surge of one million as compared to a year before. Those are stunning numbers for a single business to claim.

Local advertising accounts for a $115 billion market in the U.S single-handedly, and the company has the prospect to carry on their captivating share.
The company came up with solutions for small and medium businesses by offering them the similar targeting tools and advertising format as that of large businesses. This move will certainly help the company to attract lot of small and medium businesses.

Moreover, the company's strategy to focus on enhancing the user and product experience on its applications first and then to build a robust mobile business over time has proven successful. Facebook has a perfect structure and it has helped the company to make huge bets on acquisitions such as Instagram.

Despite the fact that connectivity, virtual and augmented reality, and artificial intelligence are at their infant stages, the company is belligerently focusing on these areas as it will help the company to complete its task of connecting the world. The company also detailed that it will carry on investing in its most developed system, the Facebook application and platform.

Facebook is creating a technology in virtual and augmented reality that can alter the way that people experience the world. In late 2015, gears based on virtual reality were launched, and the response has been impressive. At present, there are many applications built exclusively for virtual reality gears, and people have viewed over two million hours of video via VR gears.

The company also launched Oculus Rift in the previous year. Along with Rift, the company also introduced around 50 games and apps built specifically for Rift. Although investing in virtual reality might not pay off now, it will become the next big computing platform in the imminent years.

Conclusion

At present, advertisements are going to help Facebook continue growing its earnings. However, the company is also focusing on other growing markets like VR and AR. Although Facebook’s valuation is high, long-term investors  can still buy the stock as the company will likely continue growing.
Published on May 24, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

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