Why Facebook Will Thrive Even Though It Just Lost 20% in Valuation
This current correction in stock price was needed. Speculation had Facebook at such a high price that didn’t align with Facebook earnings. Also, regulation is needed in this massive data industry. But at the end of the day, Facebook will still be one of the biggest kids on the block. And by kids, I mean tech giants who control all online data. Facebook and Google make up approx. 50% of all web and mobile traffic.
When Facebook’s initial public offering was released a lot of people said that Facebook would be worth pennies per share. Shares then we’re around $28. Today, FB shares are $150 at a market cap of $430 billion. And that’s 20% below a 52 week high.
Top Reasons Facebook Will Thrive
1. Sheryl Sandberg
A lot of people rightfully think of Mark Zuckerburg as the face of Facebook, however, Sheryl Sandberg just celebrated 10 years as COO. She is a force that will help steer Facebook in the right direction. A glimpse of her Wiki:
‘Before she joined Facebook as its COO, Sandberg was vice president of global online sales and operations at Google, and was involved in launching Google’s philanthropic arm Google.org. Before Google, Sandberg served as chief of staff for United States Secretary of the Treasury Lawrence Summers.’
2. (Short Term) Instagram, WhatsApp, Messenger
Three of the other top social applications that some millennials and teens are using more than the main Facebook app are still owned by Facebook.
3. (Long-Term) Investments: Virtual Reality, Augmented Reality, Artificial Intelligence, and Internet.Org
Facebook has invested billions of dollars into the future. I could dedicate a book to what Facebook is currently working on for the future. This perspective shows how big Facebook really is, take into consideration that worldwide 2 billion people use the app. And there are over 3 billion people that still don’t have internet access. Facebook is trying to fly drones
The main reason Facebook is in the news right now is that people are discovering how much Facebook really does know about a person. Using social data to market, analyze, create, and reach is very valuable to the ones who know how to use it.
5. Let’s say Facebook worse case that lost 20% of people using their service in 2018
There would still be 130 million Americans on Facebook. That’s one-third. That’s still a massive audience. (Not to mention the billion+ active around the world)
What will regulation look like? And how do you regulate a platform with two billion users?