Its hard to imagine that anyone benefits from forced, mass isolation more than Facebook, Inc. (NASDAQ: FB) does.
The Facebook Anlayst
Tigress Financial Research Director Ivan Feinseth reiterated a Strong Buy rating on the stock.
The Facebook Thesis
Balance sheet and cash flow strengths are expected to buoy Facebook through the coronavirus-related downturn. In fact, the social media company is expected not only to survive, but to thrive.
FB is benefiting from increasing user engagement as more people shelter in place, Feinseth wrote in a note. The COVID-19-driven global quarantine is making FB the number-one place for everybody to connect for social, entertainment, business, and information needs.
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The companys swells come not only from external tragedy, though. Facebooks security and location initiatives, Messenger App updates, and new features Facebook Dating, Facebook News, Instagram Shopping, WhatsApp Payments appear to be boosting the portfolios appeal.
FBs platform innovation continues to drive strong growth in active users, Feinseth wrote. The ongoing launch of new applications and services along with increased advertising revenue will continue to drive incremental user and revenue growth.
Such growth is already being realized in Instagram Stories and Facebook Stories.
FB has a significant upside driven by the ongoing potential to monetize many of its critical applications and technologies, including Instagram, Messenger, WhatsApp, and Oculus, Feinseth wrote. FBs innovative abilities, along with strategic acquisitions to expand its services platform, will further enable it to realize more significant revenue opportunities and yields from its massive user base.
FB Price Action
At time of publication, Facebook shares were up 2% around $169.91.
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