Is Facebook Stock a Buy?
Facebook (NASDAQ: FB) stock price continues its march higher. It is currently trading near all-time highs as a substantial percentage of the world's population uses its platforms every month. However, instead of potential user saturation pointing to a slowdown, a strong balance sheet and its continued expansion under challenging conditions may instead be leading to more investors friending this popular communication stock.
In the latest quarter, family monthly active people, meaning users who logged on to at least one Facebook app in the last 30 days, rose to 3.3 billion. This accounts for about 42% of the world's population. Such influence attests to Facebook's position as an advertising powerhouse.
However, it points to a problem. With so much of the world using its platforms, logically, these increases could plateau in the foreseeable future, ultimately limiting Facebook's growth potential. This could remind investors of slower-growth companies such as Coca-Cola, which must find new growth even though it operates in nearly all the world's countries.
Source Fool.com
