Last week was a tough week on the US market entirely. Monday and Tuesday brought big declines, Thursday and Friday brought slight gains, and the week closed out on a relatively flat day during which the Dow couldn't make it into gains. However, even during the bearish market conditions, Facebook saw gains throughout the week. Today, we'll talk about why Facebook continues to edge higher, whether or not it's likely to continue, what we can expect to see moving forward, and how to take advantage of the trends.
Why Facebook Grew While Other Stocks Struggled
Facebook has grown far beyond the social media concept. Today, the social network has become a way of life for many. While that may not be enough in and of itself to excite investors in the midst of a correction, Facebook hit a major milestone that proved to be just that. While markets were crashing on Monday, more people were logging into Facebook than ever before. As a matter of fact, Mark Zuckerberg, the company's founder and CEO wrote to the Facebook community that on Monday, more than 1 billion people logged into the social network. That's about one person logging in for every seven people on the planet! That's a huge number. Here's what Zuckerberg had to say…
“For the first time ever, one billion people used Facebook in a single day… On Monday, 1 in 7 people on Earth used Facebook to connect with their friends and family. When we talk about our financials, we use average numbers, but this is different. This was the first time we reached this milestone, and it's just the beginning of connecting the whole world.”
Will Facebook's Popularity Among Consumers Continue?
This is a huge question for investors. The reality is that in the world of social media, a great company can pop up, do great, and shut down relatively quickly. Investors fear that this could happen to Facebook. However, I think the chances of that are incredibly slim. While nothing is impossible, it would be highly unlikely. That's because Facebook is a social network, but it's also far more than that. Facebook is where people connect, play games, watch videos, get their news and more. It has become a media source of its own; like the television or radio. Simply put, Facebook is part of the average consumer's day to day life; and that's not likely to change anytime soon.
What We Can Expect To See Moving Forward
Moving forward, I'm expecting to see overwhelmingly positive news out of Facebook and its stock. The bottom line is that this is a company that has done what no other website has ever done in the past. 1 billion log ins in a single day is huge; and I believe Zuckerberg when he says “and it's just the beginning…” Ultimately, users will continue to flock to the social network, advertisers will continue paying to get in front of those users, and Facebook as well as its investors will continue to make money; ultimately continuing the uptrend we've seen on the stock.
How To Take Advantage Of The Trends
We know that Facebook is more likely to see gains from here than it is to see declines. With that said, binary options traders should wait for short dips that bring the price of the stock down slightly. When these dips reach the bottom, purchase call options to follow the resulting upward trends to profits.
What Do You Think?
Where do you think Facebook is headed and why? Let us know in the comments below!
Keep informed and check out the latest financial news.