Investing is something which every adult has once considered and tried to do so, with the most common form of investment coming in the form of buying property and stocks. The latter is gaining quite the popularity in recent times. With the economy rising rapidly and companies reaching new heights in revenue and progress, it is no wonder people are so keen to invest in stocks. But for anyone venturing into the game or even for seasoned investors, there is always that company which is always a bit tricky to invest into.
In today’s world that company is Facebook, the social media giants who have been under some fire lately. The company is one of the fastest growing of the 21st century and rightly so, with over 2 billion active users Facebook is a platform ready to launch people into new heights and is the right space for advertisements and promotion of products.
All of this means that, the people have been investing in Facebook and understand the very prospect Facebook is and what it can be. So here let us take a look at some underlying numbers and see what this means for the company and whether or not you should invest in the company.
Facebook and its performance
The latest numbers indicate that facebook is looking at revenues of 12.58 billion dollars this quarter and an increase in per share prices of 1.96 dollars. This means that there has been an incremental year over year growth of 39% and 42.8% respectively. Despite being in the social media sphere for more than a decade now, the company shows no signs of slowing down. Just this year it posted a growth increase of nearly 15%!
The earnings expectations for the company are also reportedly going to be a surprise and are higher than the consensus. The company has shown tremendous strength and has come out with an earnings surprise in the last 9 consecutive quarters. Although the positive surprise has not always earned an immediate surge in the prices of the stocks, it indicates the right time to invest in the company. Another key number is the ARPU or the average revenue per user, which the company generates through ad and other sources; this year the number is set at around 5.89 dollars for the quarter. It is indicative of a 22% growth yearly and a 16% growth sequentially.
All of these numbers mean that the company is the one you should look to invest in and buying Facebook before earnings is a good idea. You might be wondering as to how can the numbers remain so strong despite all the backlash that it received and the committee hearing of the CEO Mark Zuckerberg. The reason can be credited to the sheer expansion of Facebook and its ability to reach new areas and markets on a daily basis along with a strong increase in active users. All of these mean that the business is not vulnerable and that the scares and share price drops were just a small shake. With earnings season right around the corner, it is best to look into investing on Facebook.