Time and time again, I have written about how Cambridge Analytica and other data privacy related issues are much ado about nothing for Facebook Inc (NASDAQ:FB) stock. That implies that such issues haven’t done anything to affect the growth narrative supporting Facebook stock.

But I’d like to slightly correct that statement. Specifically, these issues haven’t done anything to hurt the growth narrative supporting Facebook stock. On the flip side, they actually have improved Facebook’s growth narrative.

From a broad perspective, Facebook has cleaned itself it up. There is less garbage, click-bait content on the platform now, and more meaningful and relevant content.

Facebook has hired ‘news publisher specialists’ to go through the platform and get rid of fake news. They are also funding original news programming from established and trusted networks like CNN, Fox, and ABC.

All together, Facebook made a mistake. They’ve learned from that mistake. And now, the company and the platform are getting better.

That means the current upward trajectory in Facebook is no head fake. It is here to stay.

Here’s a deeper look:

The Facebook Platform Is Improving

This new Facebook ad, which is airing everywhere, sums it up the best.

Essentially, in a pursuit of profits over community, Facebook the platform let itself get polluted with fake news and promotional advertising content. That has led to fake news scandals, a drop in user engagement, user churn and ultimately came to a head with the Cambridge Analytica episode.

Now, though, Facebook is better than ever.

There are fewer ads and promotional content, but the ads and promotional content you do see are meaningful and relevant, thanks to micro-targeting and data.

Meanwhile, ‘news publisher specialists’ are running through the platform and vetting fake news content. Simultaneously, Facebook is funding original news shows from established networks like ABC and CNN in attempt to both regain trust and build Facebook Watch.

Concurrent to cleaning up the platform, Facebook is also expanding its commerce capabilities, starting to monetize WhatsApp, building out Instagram’s use-cases to include long-form video creation and consumption, and scored some big wins for its enterprise product, Workplace.

In other words, things are only getting better at Facebook.

Yes, the company erred when it came to data-sharing and fake news. But it appears as though the company has learned from those mistakes.

Moreover, the public is forgiving those mistakes, and Facebook is creating a better-than-ever ecosystem that consumers, publishers, and advertisers will interact with more than ever before.

Facebook Stock Is A Winner

Because of this, Facebook stock is a winner.

The stock has staged a huge rally off of its post-Cambridge Analytica lows of $150 and is now just under $190, which is only a few bucks off of all time highs. From this perspective, trade might be choppy over the next several days and weeks.

But longer-term, Facebook’s numbers will only get better. Facebook stock, which is trading at a rather paltry 25-times forward earnings, will head materially higher.

Over the course of the next several quarters and years, the following will happen:

• Facebook will integrate “Buy Now” capabilities with micro-targeting advertising solutions to significantly drive up ad campaign effectiveness, which will in turn drive up Facebook ad prices and revenue.
• Workplace will gain serious traction in the enterprise social networking space.
• Watch will become a hub for news as consumers shift from linear to internet entertainment consumption.
• Bloggers and other influencers will start using Instagram to create long-from, YouTube-like videos to connect with audiences, thereby only growing revenue opportunities on Instagram.
• WhatsApp and Messenger will ramp monetization efforts and become extremely profitable, following in the footsteps of Instagram.
• Facebook will jump into the smart home space, and become more than just an advertising company.

Put all that together, and it is easy to see why Facebook is a 20/20 (20%-plus revenue growth and 20%-plus profit growth) company for next 5-10 years. At 25-times forward earnings, 20/20 growth for the next 5-10 years is hardly priced in.

Bottom Line on FB Stock

Data-privacy concerns have done one thing: forced Facebook to get better. And they have. Now, Facebook the company, the platform, and the stock are as strong as ever.

As of this writing, Luke Lango was long FB.