Recently Tom Lee, a well-known stock strategist changed his tune (1) on Facebook Inc (NASDAQ:FB) stock, among others. He is now calling these stocks buys as he sees a lot of growth potential and as a result, a nice return for investors. Should you listen to him and invest your money in this stock or are you better off investing elsewhere?
Let’s look at Facebook in depth and see why he is right in suggesting you buy Facebook.
This article appeared first on ModestMoney.com
Who Is Tom Lee?
Tom Lee is a managing partner at Fundstrat Global Advisors. He is also the Head of Research as well. He has over 25 years experience in equity research and worked for both JP Morgan and Solomon Smith Barney before starting Fundstrat Global Advisors.
To traders, he is known as a big bull with his aggressive predictions for the market. And based on his research, has been ranked among the best equity researchers by Institutional Investor since 1998.
What Is Facebook?
Ask the average person about Facebook and they will tell you that the site is simply a place to share your news with friends and comment and enjoy on the things happening in your friends lives. But Facebook is much more than this.
In addition to user’s news feeds, Facebook Inc (NASDAQ:FB) offers a lot more. First, they have expanded into live video feeds. Now users can do live video for their friends to watch or comment on in the moment. Many small businesses and independent contractors are starting to use Facebook live as opposed to webinars since so many of their followers and fans are on the social media platform. It just makes it easier to broadcast and connect with each other.
Next, it is a playground for advertisers. With Facebook collecting so much personal data on its users, the advertisers looking to place ads and target consumers have a wealth of information. This allows them to hone in specifically on those people who are most likely to buy.
Third, we go back to Facebook live. It was just announced that Facebook Inc (NASDAQ:FB) is in talks to start streaming one Major League Baseball game per week (2) this season. If this becomes a reality, it opens the door to more live streaming of sporting events.
Finally, the company is always adding new businesses to its portfolio to expand its reach. The most notable being Instagram.