Expert Stock Picks: Tom Lee Is Bullish On Facebook Inc (FB) And So Are We

Why I Am Buying Facebook (Even At These Levels)

There is a lot of opportunity with this investing in this stock. As they update and refine their algorithm, they will be better poised to offer even more valuable personal information on its users to advertisers. This will increase the demand to advertise on Facebook and at the same time, drive up revenues.

The only trick here is to keep user’s news feeds clutter free. Too many ads and they might go elsewhere. Too few and advertisers might not be happy with the results. It’s a fine line that the company is constantly navigating.

Another reason for the optimism is the potential move into live sports streaming. Many cable television subscribers want to cut the cord, but cannot due to their love for live sports. As Facebook and other firms ramp up their agreements with the major sporting leagues to stream live games, more people will choose to cut the cord and move over to sites that are able to live stream sporting events.

More eyeballs and users on Facebook leads to more advertising dollars. Even before the news of the talks with Major League Baseball, analysts were estimating a 36% increase in growth for fiscal year 2017 and 26% in fiscal year 2018. If the deal comes together with Major League Baseball, you can expect those estimates to increase.

Finally, more people are using Facebook each year:

– Daily active users (DAUs): increase of 18% year-over-year

– Mobile (DAUs): increase of 23% year-over-year

– Monthly active users (MAUs): increase of 17% year-over-year

– Mobile (MAUs): increase of 21% year-over-year

The fact is that Facebook isn’t going away. If it simply stuck to connecting people with each other, it would go the way of MySpace and another social media platform would replace it.

But the company is an innovator and is continually growing and expanding into new ventures to bring its users and advertisers the best experience possible.

Because of this, I agree with Mr. Lee and think Facebook Inc (NASDAQ:FB) is a buy.

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