Facebook Stock Reviewed
Being a wealthy investor is all about choosing the right stock that has the highest probability of going higher over time. As technology evolves there will always be winners who innovate and simultaneously grow their company's revenues. As of September 2o19 Facebook is a dominate player in the online advertising space. Google is the only other major player in the online advertising space. In Q2 2019 Facebook reported top-line revenue of $16.9 billion, up 28% compared to the prior year.
Here's How Online Advertising Works
George and Peggy own a bridal shop in Beverly Hills, CA. They decide to launch an online marketing campaign to reach potential customers. Their target audience are females between the ages of 29 and 50. With a $5,000 advertising budget, George and Peggy's goal is to reach as many of these people as possible. With only $5,000, traditional radio and TV ads are out of reach. However, both Facebook and Google will allow George and Peggy to reach between 10,000 and 50,000 people per month with their message. Google would allow George and Peggy to open an online account and use PPC (pay per click) to enable California residents to see a link to their website when they search the term "bridal shop." This is how Google earns billions in online advertising revenue. Similarly Facebook allows George and Peggy's bridal shop images to show up in the feeds of woman in their target audience who have expressed an interest in all things bridal. When users create a Facebook account they must disclose their favorite likes and dislikes during the signup process. This ensures that Facebook sends targeted advertising to their Facebook feeds. The advantage that Facebook has over Google with this advertising model is that it allows for extreme targeting for both large and small advertisers. In September 2016 Facebook proudly disclosed they had added over 400,000 small businesses to their online advertising roster. As a result, small businesses can advertise locally or internationally on the Facebook platform.
Should You Own Facebook Stock
I think every investor who wants their piece of the advertising pie should own Facebook shares. That said, if you already shares you are good, if you don’t owe shares I don’t recommend buying them now.
At the end of 2014, Facebook's annual top line revenue was $12.4 billion dollars.
At the end of 2015, Facebook's annual top line revenue had grown to $17.9 billion dollars.
If you had invested $1,000 in Facebook stock in 2013, for $29 per share, your investment as of October 2016 would be worth over $4,400 dollars.
If you had invested $10,000 in Facebook stock in 2013, for $29 per share, your investment as of October 2016 would be worth over $44,000 dollars.
If you had invested $100,000 in Facebook stock in 2013, for $29 per share, your investment as of October 2016 would be worth over $400,000 dollars.
If you had invested $1 million in Facebook stock in 2013, for $29 per share, your investment as of October 2016 would be worth over $4.4 million dollars.
As Facebook revenue rises for 2016 and 2017, so will the stock price.
Learning how to invest in the stock market based on annual revenues and other fundamentals is what the Wealthy Investor program is all about.
In the Wealthy Investor program Tyrone teaches three major strategies:
Covered Call Writing
Selling a call option means that you would be selling the right, not the obligation, to someone in the marketplace to buy that stock away from you at a later date.
Covered call writing can help you generate $500 to $1,000 a month, depending on the size of your account.
Dividend Capturing
Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like McDonalds, NIKE and AT&T. So can you.*
Volatility Trading
Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.*
If you want to follow my weekly stock trades and have me answer your questions click here to sign up for WITradeSchool.com.
It’s time to get the financial education you need to become financially free.
Yes, you can be a wealthy investor if you get started right now.
* DISCLAIMER: Stocks and options trading involves risk and is not suitable for every investor. The stocks and options prices vary and, as a result, clients may lose or gain from their original investment. Stock illustrations posted on TheWealthlyInvestor.net web site are for illustration purposes only. Your personal results as a trader/investor may vary from the WI students listed above.
