Social media pioneer Facebook Inc (NASDAQ:FB) has become a behemoth in the advertising space. The firm’s massive number of active users, which can be easily sorted into very accurate targeted marketing groups, has made it an appealing choice for firms that want to get their product in front of willing buyers. That has also made Facebook stock an appealing choice for investors.
With Facebook’s News Feed already at capacity for ad space, there has been some question as to how the firm will continue growing.
Facebook has answered that question by expanding its service in pretty much every way possible.
Zuckerberg for President
The social media site caught a lot of flak during the presidential elections for circulating “fake news.” The problem caught Facebook CEO Mark Zuckerberg’s attention and he subsequently created a new feature on the site called Town Hall, which has been designed to let users have access to their political representatives.
The idea behind Town Hall was to help users become informed about their government, and while that’s a likely outcome, it will also add to the potential of Facebook stock.
Town Hall adds to Facebook’s usefulness and makes it more difficult to live without an account. One of the things that makes Facebook stock such a good long-term play is the fact that Mark Zuckerberg & Co. is continually updating its service to ensure that people will want to keep their accounts.
In the past, FB has done this by adding business pages, event invitations and a messaging service. Now, the firm is dipping its toe into politics in hopes of further integrating itself into everyday life.
Communication
Speaking of messaging services, Facebook is also top-dog when it comes to private communication. Between WhatsApp and its own Messenger service, Facebook owns the top two most popular messaging apps in the world.
This is a big deal, because Facebook has yet to make money on either of these services. Not only do they make Facebook stock infinitely more valuable, but they have the potential to add quite a bit to its bottom line.
Most are expecting to see the monetization strategy for Facebook’s messaging services take shape in the coming year, so Facebook stock could see a marked lift once the final plans are in place.
Taking Down the Competition
Facebook wants to be a one-stop-shop for social media users, so the site has been keeping up with the competition by implementing new features that allow users to do things like send short, disappearing messages — I’m looking at you Snap Inc (NYSE:SNAP) — and record live video.
These features not only make the site a viable alternative to new social media sites, but they also provide new revenue stream possibilities.
While Facebook’s newsfeeds may be at capacity, its disappearing messages and Instagram stories provide extra ad space. A live video feature could also bring in new cash if Facebook is able to partner with events to stream behind-the-scenes footage in real-time.
Bottom Line on Facebook Stock
Facebook is the Amazon.com, Inc. (NASDAQ:AMZN) of social media. The firm has firmly planted its flag in the industry and works hard at maintaining is position on top.
Facebook has created an entire ecosystem of features that make it hard to escape and its growing user base only breeds more users.
The more people that are using Facebook, the more attractive it is to potential users. Of all the social media stocks out there, FB stock is the most reliable, long-term pick.
As of this writing, Laura Hoy was long Facebook stock.
