Facebook is an absolutely massive company. As a matter of fact, the company has grown to be so large that there are currently only 9 companies in the world with a larger market capitalization. However, when companies get this big, one of the first questions that come up is, “can the company continue to grow?” After all, with such a large market capitalization, one would imagine that the company would have the market saturated. However, in the case of Facebook, I think that there's still plenty of room to run. Today, we'll talk about why Facebook is likely to continue seeing gains and how binary options traders can take advantage of the trends. So, let's get right to it…
Why Facebook Is Likely To Keep Growing
Facebook is a big company, there's no denying that. However, in my opinion, there's also no denying that the company still has room to grow; and more importantly, is capable of doing so. Here are a few reasons I'm so bullish when it comes to Facebook…
- Proven Earnings Abilities – Facebook didn't get so large by not being able to maximize revenue. As a matter of fact, since Facebook's IPO hit the market, they've surpassed expectations with regard to earnings growth. So, knowing that Facebook has a history of not only producing gains, but surpassing analyst expectations, it's hard to imagine that this trend would suddenly stop.
- Constant Efforts To Improve User Experience – The bottom line is that Facebook's core business is their social network. However, a social network is nothing without its users; and Facebook knows this. The company is constantly working to improve the end user's experience and get them to spend more and more time on the network. As a result, the amount of users on Facebook continues to grow exponentially. Since more users equals more money in the long run, this is great news!
- Attention To Advertisers – Another important factor to consider when thinking about Facebook and their ability to grow is the attention they pay to advertisers. After all, without advertisers, a social network makes no money. When it comes to Facebook, the company is constantly testing and adding new advertising features. As a matter of fact, they are currently testing interactive mobile video ads as a way to maximize their advertising revenue even further.
- Facebook Is Now A Culture – Above all, Facebook isn't a social network anymore. Instead, it's a way of life. Consumers do almost everything that has to do with entertainment on Facebook these days. They're connecting with friends and family, listening to audio, digesting news and video…all on the social networking platform.
How Binary Options Traders Can Take Advantage Of The Trends
Given the factors mentioned above, I would imagine that Facebook is more likely to continue growing than it is to start losing value. With that said, binary options traders have quite the opportunity with this stock. The best way to trade it during the current uptrends is to follow price movement on pull backs and watch until it reaches support. Once support is reached, Facebook is highly likely to shoot back up in value; giving traders great opportunities for large gains from call options.
What Do You Think?
Where do you think Facebook is headed and why? Let us know in the comments below!