Facebook and Paychex, Inc. (NASDAQ:PAYX) are relatively expensive stocks to acquire at the moment, but which one comes on top as a worthy investment at the current market fundamentals? CNBC’s contributors Karen Finerman and Timothy Seymour affirm that Facebook Inc (NASDAQ:FB) comes on top as it has a superior growth potential at the back of a string of acquisitions and a wave of monetization of its other products.
Facebook Inc (NASDAQ:FB) ongoing shift to video is one of the other aspects of the business that makes the stock valuable according to Seymour. There has also been talk that the company is looking to monetize Messenger another frontier that should provide the company with a reliable stream of revenue going forward.
“Facebook Inc (NASDAQ:FB) is really a juggernaut that I think still has much better growth in front of it than Paychex, and I think they have done some smart acquisitions. They seem to have some good momentum, and I think the stock goes up from here that alone is the scale the size and the growth trajectory,” said Mrs. Finerman.
Dan Nathan expects Facebook to break out in the coming weeks having tried to do that last month without success. The analyst remains bullish on the stock touching highs of $90 a share going forward.
Pete Najarian remains bullish on Facebook Inc (NASDAQ:FB) because of WhatsApp that should help increase the company’s potential future revenue, as well as user growth. Facebook is already in the process of integrating WhatsApp on its platform in Android phones with plans in place to allow users to send messages between Messenger and WhatsApp.
“Facebook Inc (NASDAQ:FB) because of Instagram and the engagement factor and because of that reason alone and the user growth. They’ve got more users right now than Twitter Inc (NYSE:TWTR) I think you’ve got to go there that’s the frank-the-tank right there Instagram,” said Mr. Najarian.
Instagram with over 300 million users has yet to generate profits, but that could change in the near future as the company moves to expand advertising measures on it going forward.
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