FB is currently trading very close to its 52 week high at a $142.60.
Facebook is doing very well with its advertising initiatives. Instagram is of particular interest to me. Although I barely log in to my Facebook account, I’m on Instagram every day multiple times a day. This morning I was scrolling through my feed and one post in particular caught my attention. The post was a 60 second clip of Russell Westbrook’s highlights from his 57 point triple double vs. the magic.
I used to have cable (I cancelled the subscription) and I used to watch Sportcenter every single morning. It was a part of my routine. My favorite parts of the show were the highlights and the top 10 plays segment. What used to take me 1 hour to watch on cable I can now watch for free during my time on the toilet (which isn’t an hour despite what my wife says). As referenced earlier, I saw every single one of the 57 points Westbrook scored in a 60 second clip. Food – there are 60 second cooking videos that replace 30 minute shows on the Food Network. Fashion, news, cars, politics, celebrities and any other topic you’re interested in is presented in pictures, slideshows or short digestible video clips.
The way most of the TV generation consumes media has changed. I don’t even know if I can sit through an hour of sportcenter with commercials anymore. What about the newer generations? Young children that can’t walk or talk yet can unlock an iPhone (Apple is also on my buy list but more on that in another post) and maneuver their way into apps and find what they want to play or watch. FB seems very well positioned for the way people are currently consuming media. I believe advertising will continue to be a strength for FB.
I plan to buy on a pullback based on the continued strength in advertising and the potential of other products like Whatsapp and Oculus.