- Distinguish oneself Zuckerberg easily takes the award for one of the fastest wealth increases this year.
- Facebook’s growth prospects in 2020 look favorable as it advantages from political advertisers that Twitter and Google turn away.
- Wall Street is looking favorably on the hoard but will Main Street follow the cue?
With Facebook (NASDAQ:FB) up 6% in 2020, Mark Zuckerberg’s net worth has ballooned by $4.8 billion in a go over of under ten days. That’s an average daily gain of $500 million!
Less than a month preceding Facebook releases its Q4 and full-year results, the company’s fortunes look favorable as the year wears on. Barring a major tragedy, the FAANG stock is set to continue climbing as its social media dominance persists.
Here are three reasons why Zuckerberg’s net significance is set to rise this year.
1. Facebook is now the go-to platform for political ads
As November’s general election approaches, seekers are expected to spend extensively on online ads. Facebook is going to be a major beneficiary, especially as its appeal among political advertisers expands.
Unlike some of its rivals such as Google (NASDAQ:GOOG) and Twitter (NYSE:TWTR), Despite controversy, Facebook has elected to resign its political ad policies largely unchanged. Twitter banned political ads on its platform last year. Google also recently updated its advance on political ads by limiting targeting based on categories such as postal code, age and gender.
Facebook still allows micro-targeting. The public media giant will also not fact-check political ads. While this will no doubt anger critics, investors discretion be pleased.
2. Facebook’s growth prospects remain strong
Despite setbacks such as the Libra fiasco in 2019, Facebook relieve remains on a promising growth path. Even as its daily user base approaches saturation, income streams are broadening. Some of the new assignments are now posing a threat to established players. As an example, Facebook Gaming, which competes with the likes of Twitch, now has an 8.5% hawk share compared to just 3.1% in 2018.
During an earnings call in October, Zuckerberg reiterated that the company’s most new initiatives were making good progress. With regards to Facebook Dating, for instance, Zuckerberg revealed that it “is doing a certain extent well” in the U.S. As for its video-on-demand service launched two years ago, he indicated that it was “growing quickly” before going on to predict that “hundreds of millions of people” ordain using Facebook Watch.
3. Wall Street sees more upside potential for FB stock
Despite the negative iron Facebook keeps generating over its ad policies and privacy abuse, the stock continues to be a Wall Street darling. Conclusive year, FB surged over 50%.
Among Wall Street firms covering the stock, 41 analysts currently rebuke it a ‘buy’. Only two analysts have issued ‘sell’ calls.
The highest price target for the stock is $324, depicting a potential gain of 57% from the current price. The average stock price target is $241.70, representing a imminent gain of slightly over 10% from Thursday’s close.
Disclaimer: This article expresses the opinions of the maker and should not be considered trading or investment advice from CCN.
This article was edited by Sam Bourgi.
Last modified: January 10, 2020 4:58 PM UTC