Facebook Inc (FB) Still Has Room To Run Following Its Rise in 2015

Despite Facebook’s resounding success since going public more than three years ago and its continuing strength in 2015, the company is still under-owned by institutional investors, according to Citigroup. The bank’s recent survey of the top 40 institutional investors, which represent nearly two-thirds of the total institutional holdings among large-cap internet stocks, found Facebook to be among the most underweight, along with Google (GOOG) (GOOGL).

“We believe FB and GOOGL may have the greatest near-term opportunity among large-cap internet to benefit from portfolio re-weighting if they execute consistent with current investor expectations,” Citigroup’s detailed report showed, as quoted by MarketWatch.

Facebook Inc (NASDAQ:FB) is aggressively expanding into areas outside of its core social networking business. The company earlier this year announced it would add 1,200 new workers, the outgrowth of CEO Mark Zuckerberg’s ambitious vision to capitalize on its virtual reality products. The social network’s continuous expansion, both organically and via strategic acquisitions, will keep shareholders excited for a very long time.

Whether for short-term profit or long-term investment, the consensus on Wall Street is a ‘Buy’ for the stock. Combined with the underweight stance by institutional investors and substantial hedge fund investment, the stock still has room to run and its various initiatives give credence to the belief that Facebook Inc (NASDAQ:FB) will not fade, but continue to make investments to create value for its shareholders and maintain its dominant presence in social media. Thus, Facebook’s significant gains and rise to one of the largest companies in the U.S. is not a cause for alarm, but a signal to invest in a company with still a prosperous future.

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