At present, we are all afraid of Facebook shares due to many new headline risks. But if you go back and look at the big picture, the fundamental long-term aspect of this business hasn’t changed much.
From that perspective, there are many things I like about Facebook shares at their current prices. It may have more short-term stock weakness due to the persistent risks in the holders. But those headlines will gradually improve, and when they do, this share will go much higher.
Instagram and WhatsApp are still getting new users
According to Investorplace, however, the slowdown in user growth after 2 billion users is not so worrying. Though Facebook, Instagram, Messenger, and WhatsApp are still getting new users. The slowdown in revenue growth is also temporary, as Facebook always explores new ways of locating them, for example. The Historias format continues to grow. And depressed margins are a temporary by-product of increased security spending.
Long-term growth for Facebook remains solid
As such, the drive for long-term growth for Facebook remains solid. As long as users stay in the ecosystem and advertisers continue to spend more dollars on the digital channel, the fundamental aspects of Facebook will remain healthy.
ARPU of about $17 and growing fast
The potential increase for several years is huge: There are two ways to see Facebook’s long-term earnings potential.
The first is to understand that Facebook between Facebook, Instagram, WhatsApp, and Messenger can make money from 6,000 million users on the four platforms. While Facebook reports 2.6 monthly users, this figure does not count for users using multiple platforms owned by Facebook. Adding 2,200 million Facebook users, 1.5 WhatsApp users, 1,300 million Messenger users, and 1,000 million Instagram users increase the total number of advertising opportunities to 6,000. In a nutshell, you have the chance to advertise to the same user on both Facebook and WhatsApp.
Currently, Facebook is only monetized at around $3.2 billion. Of these users (Facebook + Instagram), doing so in an ARPU of about $ 17 and growing fast.
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