Facebook Inc. (NASDAQ:FB)’s upward momentum might have slowed on posting impressive fourth quarter earnings, but that should not be a point of concern according to CNBC’s, Jim Cramer. The Mad Money Analyst maintains that the current trading levels present a perfect opportunity to own the stock just like Apple Inc. (NASDAQ:AAPL), instead of trading it as long term prospects continue to look brighter. The analyst expects the giant social network to post earnings per share of $3, next year.
Cramer attributes the slight dip in the market to Facebook Inc. (NASDAQ:FB) posting its results on the wrong day with belief that the stock could have rallied by up to $5 had it posted on another day. Expenses growing by 50% in the quarter also seems to have scared Wall Street according to Cramer.
“Ridiculous as the action was in the after the market, the markets mistake is your opportunity because right now. You are getting a rare chance to buy Facebook Inc. (NASDAQ:FB) at bargain levels if you are willing to think a little bit longer time,” said Mr. Cramer.
Facebook Inc.(NASDAQ:FB) has already highlighted its ability to turn it big on the mobile front having generated impressive returns as more people continue to use smartphones on a day to day basis. The fact that nearly 20% of mobile traffic in the U.S usually end up in Facebook or Instagram is sure to be a game changer for the giant social network in the years to come.
Mobile already accounts for 70% of Facebook Inc. (NASDAQ:FB) revenue. Increased efforts towards mobile advertising should be a game changer for Facebook as more advertiser’s budget continue to be allocated towards mobile. The Mad Money Analyst expects the social network to do a lot more in monetizing its mobile offerings as one of the ways sustaining the ongoing momentum in terms of growth while also expanding its video offerings on the platform.
“Facebook has become one of those companies where I don’t think they have enough sales people to handle all the inbound ad business they are getting. Other companies have sales people frantically trying to do business; these guys are frantically trying to answer all the phone calls from companies who want to advertise. Like Apple Inc. (NASDAQ:AAPL) I think Facebook needs to be owned not traded,” said Mr. Cramer.
Facebook posted earnings per share of $0.54 in the fourth quarter with revenues growing by 49% on a year over year basis as its active users clocked highs of $1.39 billion from 1.2 billion for last year. Cramer maintains CEO; Mark Zuckerberg has proved he can be trusted and one of the reasons why the stock remains a buy at the moment as recent investments are expected to pay up in terms of returns going forward.
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