Last Friday, Facebook stock broke its 52 week all time high. Investors are loving the stock for 3 reasons right now. Today, we'll take a look at the three things that are pushing the stock upward, see whether or not they are valid causes for movement, and discuss where the company's stock is likely to go over the next few months. So, let's get right to it.
Reason #1 – Facebook Is Testing Larger Mobile Ads
Online advertising has changed quite a bit with the invention of the smart phone. The reality is that more people are surfing the web in the mobile environment today than ever before. So, it's important for online companies to tap into the potential advertising revenue. While Facebook isn't new to mobile ads, they are coming up with ways to make these ads more profitable. One of the most recent developments in this effort is the fact that the company is testing larger mobile ads; which should lead to more clicks and more revenue.
Is It A Big Deal? – Yes! As mentioned above, more consumers are surfing the web in the mobile space today than ever before. The reality is that mobile ads are already big money and only going to grow. So, this shows that Facebook is taking a step in the right direction.
Reason #2 – Exciting Plans For F8 Conference
Facebook will be attending this year's F8 conference and they've got plenty to discuss. One of the main hit points they will be discussing is changes to their messaging platform. While they haven't leaked too many details about their plans, Facebook has said that they're going to be adding new ways for third parties to use the service. One of those new ways is making it so that developers can create third party apps designed to display content through the messenger.
Is It A Big Deal? – YES! This one is huge. The reality is that millions of people are already using Facebook's messenger, but the system currently generates very little money. By opening the ability for developers to create apps specifically for messenger, Facebook is adding more revenue opportunities to their repertoire with the service.
Reason #3: Analysts At JPM Increase Facebook's Target Price
Finally, an analyst at JPM Securities increased Facebook's target price from $94 to $97; citing excitement over the developers conference next week and Facebook's stance as one of the companies that is poised to take a lion's share of online ad revenue in the future. Along with the upgraded target price, JPM Securities also reiterated the fact that they have the stock rated as “Market Outperform”.
Is It A Big Deal? – In my humble opinion, this one's not much of a big deal, but it is getting quite a bit of air time on major news outlets; so, I'd imagine it's big for some investors. In all reality however, the stock is already rated as “Market Outperform”; so, we can continue to see increases in target expectations because it's a great stock!
Binary Options Traders Should Follow This Trend
As a binary options trader, you make your money based on market movement. Well, there's a strong uptrend at Facebook just waiting to turn into profits; and, considering the causes of the trend, it's most likely here to stay for a while! So, what are you waiting for…start trading now!