FB Stock: Report Delivers Blunt Reality Check to Facebook Inc Bears

Great News for FB StockGreat News for FB Stock

Naysayers have always been critical of Facebook Inc (NASDAQ:FB) but this new report will silence FB stock bears for good.

Recall that when Facebook went public, critics barraged the stock with negativity. They had one major concern: how will Facebook monetize a social media web site? The concern was genuine, but little did they know that Mark Zuckerberg had it all planned out.

Within three years of going public, the company achieved gargantuan growth. Zuckerberg not only managed to monetize the platform, but he eventually made it into one of the most sought-after advertising platforms for marketers.

Yes, RBC Capital’s new research report reveals that Facebook is now the most favorite online advertising platform for marketers. RBC analyst Mark Mahaney published the statistics of the company’s seventh annual survey on online advertising this past week. (Source: “RBC Capital’s Latest Online Ad Survey is Bullish for Facebook (FB) and Google (GOOGL) and Bearish for Twitter (TWTR),” StreetInsider.com, March 8, 2016.)


Check out these interesting takeaways from the report…

First off, interest in online advertising is on the rise, which is great news for an ad-based Internet company like Facebook. More than 2,000 advertising professionals were surveyed by RBC, of which a record 57% now allocate a portion of their budget to online advertising. This is up from 49% a year ago and growing.

The next revelation will catch the bears off guard…

Facebook now takes the top spot next to Google at delivering the best return on investment (ROI) on ad dollars. Fifty-nine percent of the advertisers surveyed believe they were able to achieve better returns by advertising on Facebook in the last six months, while 42% believed the same for Google.

Plus, Instagram is also finding great traction with marketers. A whopping 71% of advertisers showed interest in advertising on Facebook-owned Instagram.

And here’s the best of all findings: believe it or not, Facebook’s video advertising delivered better returns than Google’s YouTube.

This report serves as a blunt reality check to those Facebook bashers. No longer can they deny Facebook’s rising dominance in the online advertising space.

Remember, Facebook’s primary source of revenue is ad dollars from its namesake platform and Instagram. Regardless of the company’s foray into the hardware business with the “Oculus Rift,” Facebook would have found it hard to grow if its social media web sites were not making money.

The Bottom Line on FB Stock

Facebook has to be, hands down, the best-managed company in the industry. FB stock has achieved gargantuan growth only three years after going public.

Plus, RBC’s report confirms that this growth will continue as Facebook becomes a leader in online advertising. The ultimate winners, though, will be the loyal Facebook stockholders who’ve stood by the company through its ups and downs.