No doubt, Facebook continues to generate a lot of money and is valued at a low price. However, investors are not impressed. So what’s next for the gigantic social media company called Facebook?
E-commerce is the big step for Facebook
According to TheStreet, the big step for Facebook in the short term will be its foray in e-commerce. Facebook will try different strategies on its smaller platform Instagram, in the beginning, before fully implementing this service in its platform family.
Mark Zuckerberg, therefore, told investors that the trade would be a major focus for the company in the short term as a way of helping consumers discover new brands and also expanding the influence of their platforms.
Facebook has no debt and has 41 billion dollars
The principle of investing is that an asset is worth all its future cash flows discounted at present with an appropriate discount rate. And at some point, the value of an action is adapted to its intrinsic value.
Facebook has no debt and 41 billion dollars in cash and equivalents, or 9% of its market value consist of cash, but the shares have not only left Nasdaq for the last 12 months, but you have lost 6%.
But even under Facebook’s worried 2019, Facebook continues to manage operating costs from 45% to 50%, while revenue growth is down to around 25%.
Facebook revenue and expenses are expected to be adjusted when we reach 2020
No doubt, the revenue of Facebook revenue and expenses are expected to be adjusted when we reach 2020; Facebook can say that it hopes to increase its capital by approx. 20% in the coming years.
In the future, Facebook is much more than just a social networking site; it will be an increasingly engrossed conglomerate that offers its vast user base an infinite range of value-added services.
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