Facebook Stock Price
What's Next for the Facebook Stock Price in 2018
Facebook Inc. (Nasdaq: FB) is among the most popular technology stocks in today's market, with an average daily trading volume of more than 20 million shares.
The Facebook stock price climbed more than 51% in 2017.
But that's just the beginning of FB's meteoric rise…
How Much Was Facebook Stock at the IPO?
When the Facebook IPO debuted on May 18, 2012, Facebook shares were priced at $38 per share.
This was a sign of massive interest in Facebook stock from investors, because the IPO price was the high end of the expected $34 to $38 range.
From the opening price of $177.68 on Jan. 2, 2018, that's a climb of 367.57%.
But can the Facebook stock price keep climbing in 2018?
Why the Facebook Stock Price Can Keep Climbing
The Facebook stock price can continue to climb because Facebook is one of the best social media sites to display ads.
Marketers reach a massive audience through Facebook and receive detailed reports on how their campaign efforts perform.
Facebook has 2.07 billion monthly active users (MAUs) and 1.37 billion daily active users (DAUs) as of September 2017.
The company's Messenger program also had 1.2 billion MAUs as of April 2017.
On top of that, Facebook owns Instagram, which has more than 800 million MAUs and 500 million DAUs.
Fortunately for shareholders, there are even more untapped markets for Facebook to target to grow its user totals.
And with more users, advertisers will be willing to spend more money to reach an even larger audience…
Facebook Can Still Add More Users for Revenue Growth
The U.S. Census Bureau and World Bank estimated India's population was 1.25 billion in 2013.
However, according to India Today, the country had just 112 million Facebook users as of the end of 2014.
But the number of Facebook users has grown by leaps and bounds…
For 2017, Statista estimates that 194.1 million people used Facebook in India.
And that number is only going to climb…
In 2018, Statista expects the number of Facebook users in India to reach nearly 220 million. That's an increase of 13.34% in just one year.
There's also a huge opportunity in India, because two-thirds of the population is under the age of 35.
But India isn't the only populous country that presents a huge opportunity for Facebook…
China has banned Facebook, but people are still finding a way to sign up. Statista projects there were 49.17 million FB users in China as of 2014 and roughly 52.9 million in 2016.
By 2020, the number of Facebook users in China is expected to rise to 57.3 million, an increase of 8.3%.
In addition, CEO Mark Zuckerberg may be able to reach the 1.35 billion Chinese population another way. During 2014, Bloomberg Business reported that FB leased space in Beijing.
FB also has a Hong Kong office, where companies wanting to reach international markets can purchase ads.
FB may be maturing in its home base, but the world holds literally billions of possible users.
And there are more reasons why the Facebook stock price will climb…
Facebook Can Generate Billions in Revenue from Instagram
Zuckerberg showed why he was a visionary in 2012, when he paid $1 billion for Instagram, a picture app.
Wall Street thought it was folly.
But now it knows it was a stroke of genius.
Statista projects that roughly 11% of FB's overall U.S. mobile advertising revenue was generated by Instagram in 2015.
And in 2017, Statista projected it would amount to 27% of that total.
By 2020, analysts forecast that Instagram will contribute $5.8 billion in revenue.
What Is the Projected Facebook Stock Price Over the Next Year?
From today's (Jan. 26, 2018) opening price of $187.55, analysts surveyed believe the FB stock price will climb 12.64%, to $211.50, in the next 12 months, according to FactSet.
But there are also a few bearish predictions…
Societe Generale projects the FB stock price will fall to $131. It has a "Sell" rating for Facebook stock.
Also, BMO Capital Markets believes the FB stock price will fall to $170 per share. It has a "Hold" rating for FB stock.
However, we remain extremely bullish on how high the Facebook stock price can climb…
The Facebook Stock Price Could Climb to $250 by 2020
According to Money Morning Director of Technology & Venture Capital Research Michael A. Robinson, the Facebook stock price will hit $250 per share by 2020.
That represents a nearly 33% jump from the current price of $187.75.
This forecast is driven by Facebook's user growth globally, Instagram revenue growth, and presence in the growing virtual reality market.