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Facebook Stock Price Soars 10% Today – Here's Where It's Headed

Facebook stock price

The Facebook stock price is skyrocketing today after CEO Mark Zuckerberg announced impressive results for Q1 2016.

The social media giant now has 1.65 billion monthly active users, and it seems like nothing can slow Zuckerberg's company down.

But Facebook shares are trading at an all-time high today, and investors want to know if this is the right time to add FB shares to their portfolios. Find out here...

Should I Buy Facebook Stock After Q1 2016 Earnings?

Facebook stock price

The Facebook stock price has returned gains of 34% over the last 12 months, and investors are hoping CEO Mark Zuckerberg can keep profits pouring in.

But Wall Street has lofty expectations for Facebook this quarter that the company may not be able to live up to.

While Wall Street will have a knee-jerk reaction to the Q1 2016 earnings report from Facebook if the company misses short-term expectations, here's what you really need to know before April 27...

What the Facebook Stock Price Will Do Next in 2016

Investing in Facebook Stock: Facebook Inc. (Nasdaq: FB) is one of the most popular tech stocks on the market today with an average trading volume of more than 20.2 million shares per day.

The Facebook stock price ended 2015 up 175% from its IPO price of $38. The Facebook stock price today is now over $100 per share, where it has remained throughout early 2016.

fb-undeniable-online-dominanceFacebook is by far the biggest social media company in the world. And these charts show why owning Facebook stock in 2016 will pay off for investors…

Facebook Stock Analysis

FB stock price gains for 2013, 2014, and 2015 were 114%%, 46%, and 30%, respectively. And we see FB stock climbing to $250 per share by 2018. That would mean another gain of 150% for investors.

FB had 1.49 billion active users in August 2015, according to the latest data from Statista. WhatsApp and Facebook Messenger – both of which are owned by FB – were the next highest, with 800 million and 700 million active users, respectively.

In fact, Facebook and its acquisitions (WhatsApp, Facebook Messenger, and Instagram) account for 43.76% of active users across all social media platforms in Statista's August data.

FB Earnings Analysis

In the Facebook earnings report released Nov. 4 the company revealed $4.5 billion in revenue and $0.57 earnings per share (EPS). That's 11% revenue growth from the previous quarter.

By comparison, the latest Twitter Inc. (NYSE: TWTR) earnings, reported on Oct. 27, revealed revenue of $569 million. And LinkedIn Corp. (NYSE: LNKD) logged $780 million in its Q3 2015, reported on Oct. 29.

Mobile's contribution to Facebook revenue is huge. It accounted for 76% of total revenue in Q2, up from 73% in Q1.

fb-revenue

While those two factors pushed FB stock price to a 30% gain in 2015, there are three major reasons why we see the Facebook stock value continuing to climb throughout 2016.

Why the Facebook Stock Price Will Rise, Reason No. 1

While Facebook’s monthly active user total was already above 1.4 billion in August 2015, the company has plenty of room for growth. And that will be a huge reason to buy Facebook stock in 2016…

According to state provider DMR, Facebook only had an 8.2% penetration in India as of October. The U.S. Census Bureau and World Bank estimated that India had a population of 1.25 billion in 2013, but India Today reported India only had 112 million Facebook users as of December 2014.

And with 65% of the population under the age of 35, there are still hundreds of millions of new users to obtain.

But there's a different country with an even bigger opportunity for Facebook stock…

China has placed a ban on Facebook, but CEO Mark Zuckerberg is making progress on reaching China's 1.35 billion residents. In 2014, Facebook quietly leased a space in downtown Beijing, according to Bloomberg Business.

Along with the new office space, Facebook has an office in Hong Kong, where it sells ads to companies wanting to reach international users.

Facebook may be reaching maturation in the United States, but there are billions of potential users who have yet to sign up in foreign countries.

Here’s another reason why we see the Facebook stock price climbing much higher in 2016…

Why the Facebook Stock Price Will Rise, Reason No. 2

In 2012, Facebook purchased Instagram for $1 billion in Facebook stock and cash.

The billion-dollar price tag seemed high at the time, considering it only had 30 million users. And Wall Street pundits were especially baffled since Instagram did not make any money.

But Zuckerberg knew what he was doing

Instagram had 30 million users when Zuckerberg first purchased it. But that number grew to more than 400 million MAUs by September 2015. That's 80 million more MAUs than Twitter Inc. (NYSE: TWTR) reported in Q3 2015.

The mobile picture app is also expected to earn close to $600 million in ad revenue this year. Research firm eMarketer projects Instagram will earn $2.81 billion in global mobile ad revenue annually by 2017. That means that ad revenue from Instagram could account for more than 10% of Facebook's total 2017 ad revenue, according to eMarketer.

But aside from being a new source of revenue, Instagram serves a vital role in Zuckerberg's portfolio…

You see, there's an assumption that younger users are leaving Facebook. According to Piper Jaffray, those assumptions are true.

In 2013, a research study from Jaffray stated that Facebook was the most important social network to 33% of teenagers. Just two years later, only 14% of teens felt that way about Facebook. But Instagram received 32% of teens' votes in 2015. That was the largest amount for any social media site.

Combined, 46% of teens preferred either Instagram or Facebook over rivals like Twitter and Snapchat.

So FB stock investors hear that Facebook is losing younger users, remember that they are now just using Instagram, which Facebook also owns. There's one more big reason why we are so bullish on the Facebook stock price in the long-term…

Why the Facebook Stock Price Will Rise, Reason No. 3

The mobile industry is so promising for the Facebook stock price that Money Morning Defense & Tech Specialist Michael A. Robinson called Facebook a "mobile goldmine."

And mobile advertising revenue is only going to increase for Facebook in 2016 and beyond…

Not only will Facebook see increased mobile advertising revenue from its flagship network and Instagram, but Facebook has two platforms Zuckerberg hasn't even started to monetize yet.

In 2014, Zuckerberg purchased messaging service WhatsApp for $19 billion, according to Bloomberg. Zuckerberg has grown the service from 450 million users to 900 million. Business Insider projects it could earn $3 billion in revenue by 2020.

Facebook also has an in-house messaging service it has yet to monetize. As of July 2015, Facebook's Messenger had 700 million users, according to TechCrunch.

So now the big question is: When will Facebook monetize Messenger and WhatsApp? Zuckerberg provided a general answer in a Q2 2015 Facebook stock earnings call.

Zuckerberg stated that in 2006 and 2007, he faced a lot of pressure to place banner ads on Facebook's organic content. But Zuckerberg felt that ads and monetization would be most effective over the long term if natural interactions between businesses and people using their products took place.

Mobile ad revenue will continue to drive the FB stock price higher in 2016, and mobile ad revenue will drastically grow when Zuckerberg decides to monetize WhatsApp and Messenger.

But our fourth bullish Facebook stock price prediction is our biggest…

Here's why…

Why the Facebook Stock Price Will Rise, Reason No. 4

The Facebook stock price may be up more than 150% since its IPO, but Zuckerberg has had plenty of challenges to get the FB stock price where it is today…

Three months after the Facebook IPO offered shares at $38, the Facebook stock price plummeted to $19.69 in August 2012. This was caused by early investors like Accel Partners, Meritech Capital Partners, and Greylock Partners selling their shares after the lock-up expiration for share selling had expired.

Shareholders were reassured by Zuckerberg that he wouldn't cash in his FB shares, according to Tech Crunch. But the Facebook stock price didn't trade above its IPO price until August 2013.

Aside from stabilizing the FB stock price, Zuckerberg has dealt with criticism regarding his vision for Facebook. His $1 billion purchase of Instagram and $19 billion purchase of WhatsApp were both highly scrutinized.

But as Robinson told investors in 2014, "Facebook founder and CEO Mark Zuckerberg will have the last laugh here."

And he's already established another foothold in a billion-dollar industry that pundits still don't understand. Facebook purchased virtual reality company Oculus VR in 2014, and many analysts once again questioned how it would add to Facebook's bottom line.

Current virtual reality platforms are heavily associated with video games, but Zuckerberg is looking at the bigger picture…

"After games, we're going to make Oculus a platform for many other experiences," Zuckerberg stated in a Facebook post. "Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers all over the world, or consulting with a doctor face-to-face – just by putting on goggles in your home."

Research firm CCS Insight projects that the augmented and virtual reality device market will be worth $4 billion by 2018.

Future of the Facebook Inc. Stock Price in 2016

For investors asking “Should I buy Facebook stock in 2016?” the answer is “yes,” if you plan on holding the stock in the long-term. There are four major catalysts that will continue to drive the FB stock price higher in 2016: user growth, Instagram revenue, mobile growth, and CEO Mark Zuckerberg.

The Facebook stock price climbed 30% in 2015, and we see this stock bringing double-digit profits to investors for years to come.

Stay tuned to Money Morning for everything you need to know about Facebook stock, the Facebook stock quote, and how to buy Facebook stock in 2016.

What the Facebook Stock Price Will Do Next in 2016

Investing in Facebook Stock: Facebook Inc. (Nasdaq: FB) is one of the most popular tech stocks on the market today with an average trading volume of more than 20.2 million shares per day. The Facebook stock price ended 2015 up 175% from its IPO price of $38. The Facebook stock price today is now over […]

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Should I Buy Facebook Stock Ahead of the F8 Conference?

facebook stock

The Facebook stock price is down ahead of the CEO Mark Zuckerberg's big F8 developer conference.

At the event, the social media giant will discuss all the new developments within the company that will help developers make even more money off of Facebook.

But Facebook's Messenger service is expected to be in focus as the communication platform has over 900 million users but isn't monetized. Could the F8 conference help the FB stock price climb this week? Here's everything you need to know...

"Must-Have" Facebook Stock Is Our Pick of the Week

facebook stock

Facebook stock has had an impressive 375% run over the past three years, but that shouldn't discourage investors.

Facebook has been making all the right moves and now is positioned for more big gains in the years ahead. That's why it's our Pick of the Week.

Here are two major moves the social media giant has made that will power FB stock to massive gains over the next few years...

Facebook Stock Price Today Climbing as Oculus Rift Hits Homes

Facebook stock price today

The Facebook stock price today is up modestly after the first set of Oculus Rift pre-orders reached consumers.

The demand for the virtual reality headset was so high that it reportedly sold out just minutes after it was first available to order in January.

Of course, Wall Street is just focusing on the gaming aspect of Oculus Rift. But there's a much bigger picture that we are focusing on. In fact, we think the FB stock price could trade at $250 per share in just four years...

New FB Stock Catalyst in China Could Be Worth $65 Billion

FB stock

The FB stock price has skyrocketed over the last several years, but revenue growth is still being held back because of Facebook's ban in China.

CEO Mark Zuckerberg has been in overdrive to lift the ban, however, and he just returned from a very important meeting with China's Propaganda Chief Liu Yunshan.

You see, if Zuckerberg gets his dorm-room creation into China, he just opened up a potential $65 billion growth catalyst for FB shareholders...

Our Shocking Facebook Stock Price Prediction Reinforced by Latest Acquisition

Facebook stock price

The Facebook stock price has been stagnant in 2016, even though the company just made a huge acquisition.

You see, Facebook purchased picture and photo app Masquerade for an undisclosed amount of money.

Wall Street is viewing this as a way to compete with Snapchat's growing popularity, but here is what you really need to know...

The Facebook Stock Price Will Climb 133%

dija today

Since its 2012 IPO, the Facebook stock price has climbed 189%.

But in 2016, the Facebook stock price has largely been flat despite impressive earnings.

So, has Facebook Inc. (Nasdaq: FB) stock plateaued at around $100 per share, or is this just a temporary setback?

There are three big reasons why the Facebook stock price is set to skyrocket to $250 per share by 2020...

The Facebook Stock Price Set to Soar from Incredible, Sneaky Innovation

Facebook

The Facebook stock price is down 1.03% in the last month, and it has been mostly flat in 2016.

The market is volatile right now, and even FB stock hasn't been immune to the issues facing global markets.

But we just discovered a huge catalyst for revenue growth inside a simple, little smiley face...

Facebook Stock Ready to Skyrocket from Exciting New Medical Opportunity

Facebook stock

The Facebook stock price has not been immune to the volatility the global markets are experiencing right now.

In fact, the FB stock price has dropped 6.65% since it opened at an all-time high on Feb. 3.

But we just uncovered a new medical development in a sector with a projected worth of $150 billion that Facebook has a foothold in...

Facebook Stock Price Set to Skyrocket on New $150 Billion Catalyst

Facebook stock price today

The Facebook stock price has been very volatile over the last 12 months, even though the company reported strong earnings in Q4 2015.

After opening at an all-time high of $115.27 in early February, FB stock has fallen 7.09%.

But while the global markets are volatile now, we just found a $150 billion catalyst that we had to make sure our readers know about right now...

Is Facebook Stock Stuck in a Tech Bubble?

Facebook stock

The Facebook stock price is only slightly up in 2016, despite the company increasing revenue by 51.68% in its latest earnings report from the same time a year ago.

Because the FANG  stocks are down for the year, some investors are wondering if FB stock is trapped in a 2016 tech bubble.

Even though investors are panicking and the markets are volatile, we believe that there is a huge opportunity for patient investors right at this very moment...

Why the Facebook Stock Price Is a Huge Discount Now

Facebook stock price

The Facebook stock price is down today, even though the social media giant crushed expectations in its Q4 2015 earnings report.

There has been a small rebound in the markets the past few days, although Facebook stock has yet to really start climbing for shareholders.

But we wanted to get to the bottom of what's really going on with Mark Zuckerberg's company, and we provide that detailed information right here...

The Hidden Earnings Number That Will Drive the Facebook Stock Price in 2016

facebook stock price

The Facebook stock price is climbing after the company crushed expectations for its Q4 2015 earnings report.

The social media giant now has 1.59 billion monthly active users on Facebook, but can Facebook continue to grow and beat expectations?

If you want to know what will drive revenue growth moving forward, we found a word that was mentioned 31 times in Facebook's earnings call...