This post 3 Facebook Secrets That Will Hand You Huge Profits appeared first on Daily Reckoning.
Big tech is soaring.
Facebook Inc. (NASDAQ:FB) rocketed higher last week, spiking to new all-time closing highs on Friday. The social networking giant has cemented itself as an important market leader once again this year, blasting off its summer lows to help power the market higher into the fourth quarter.
And it’s just getting started…
Our Facebook trade has already put double-digit gains in your pocket. Now we’re seeing plenty of room for this stock to run much higher over the next several months—and beyond.
Sure, Facebook has more than its fair share of detractors these days. The naysayers claim kids aren’t using the platform anymore. Its ads aren’t as effective as they could be. And the stock is just too damn expensive at current prices…
We think that’s a load of bunk.
There’s no way around it: Facebook is taking over the world. Here’s how…
1. Facebook is acquiring and retaining active users.
If you want something to be successful, people have to use it. It’s a no-brainer. This is the secret Facebook has expertly cracked. Just check out their latest numbers for active monthly users…
Today’s games are games of numbers, thousands, billions, and millions get thrown around all the time, even trillion lately (we’ll touch on that a little later). We know the number 1.5 billion holds a lot of sway in the realm of social media.
And we’re not just talking monthly users either, Facebook is even garnering 1 billion-plus active daily users.
Even their mobile messenger app has over a billion monthly users. A billion users and they are still waiting to monetize it. And we already know how good Facebook is at monetizing their products.
Facebook might be the old man in the room compared to some of its newer competitors like Snapchat. But it just hasn’t seen that flat-lining engagement trend that haunts most social media players in the market.
With 85% of these user coming from outside the U.S. and Canada, Facebook has entered bidding war for the rights to broadcast cricket to their second largest market overall—India. With the craze we’re seeing by other top dogs for payTV (Google, AT&T, etc.) this could be huge for Facebook.
Which leads us to our next point…
2. Facebook is never going to be a one-trick pony
We’ve seen social media platforms like Instagram reach crazy highs only to flat-line. But that’s simply not the case for Facebook. Sure, Facebook has grabbed almost everyone on the Internet already (72% of Internet users in the U.S. alone). But Facebook continues to keep users coming back day after day with engaging new applications.
Facebook isn’t going to stop pumping out new updates for their day-to-day users as they made clear earlier this week…
The company just announced that it is adding food delivery services that will work directly and seamlessly through the Facebook mobile app. That means more and more of Facebook’s largest demographic (those garbage-eating millennials) will be adding a few daily visits to Facebook to get their fix.
Yes, you can order pizza by tweeting an emoji—but we’re betting Facebook comes out on top in the food delivery game.
Facebook isn’t just tackling mundane first-world problems like customized food delivery. It also has its hands in high-tech developments to help get its products in the hands of every person on the planet.
Even virtual reality has become a huge interest for Facebook. Videos of Oculus Rift demos, Facebook’s answer to VR competitors, have been circulating the web and there’s no denying that VR is going to be huge.
It already has the attention of everyone in health care and entertainment for applications in training and gaming. All of VR’s applications are going to be incredibly lucrative and Facebook is going to be competing with the best as Oculus Rift garners more attention.
It’s clear that the company isn’t going to stop pumping out updates and innovations that make it more useful to an already Facebook-crazed world…
3. The next trillion-dollar company?
The race is on to see which company will be the first to earn a market value of $1 trillion…
A few of the world’s biggest public companies are steadily creeping toward the trillion-dollar mark. Facebook is one of ’em. Whether or not it’s first across the finish line remains to be seen. But we can make a compelling case for the social networking king.
Just take a look for yourself…
Facebook is sitting just under Amazon at a $375 billion market cap and steadily gaining. Facebook is also going head-to-head with fellow $1 trillion-seeker Google. And if Facebook gets its way, it could be the next major search engine. Facebook has already indexed 2 trillion posts and is racking up posts at 1.5 billion per day. And it already accounts for 1 in 5 page views on the web today.
One of the most important things to watch for in the race to $1 trillion is brand loyalty. When you couple Facebook’s loyal following with Mark Zuckerberg’s latest innovations and interests, you can bet we’re going to see Facebook climb the rungs of this ladder to keep up with all the major runners in the race.
If you’re not focused on Facebook, you’re missing one of the biggest growth opportunities in the world. Our little trade is already up double-digits. Watch it continue to post new highs (and shove more money in your pocket) as we race toward the new year…
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