STOCK INVESTMENT OPPORTUNITIES
Currently, technology is among the sectors on fire as far stock investment is concerned. Again, over the past few years, it has also paid to be a believed. And for the investors craving for sustainable ventures at the moment, they should be healthily diversified. For the few who will be venturing into tech stocks this year, they will be definitely on their way to building a robust portfolio. Out of many reports by the US media in 2017, seven technology picks crushed the market. Shifting upwards by 40% and challenging the Standard and Poor’s 600 indexes by 24% points (Duarte, Machado & Duarte, 2010).
Analysis based on technological companies has indicated an outperformance which is exceptional and can be reliable year after year. So, as an exposure to this promising sector of US economy, I would advise my client to invest in Facebook, Inc. (FB) Company (Duarte, Machado & Duarte, 2010).
Once Warren Buffett, who is a legend in investing said that when he decides to buy a stock, he doesn’t care whether the company dealing with closes the stock market the day after or after a couple of years (Kirkpatrick, 2011). Well, Facebook may not be Buffett’s style but it is an appropriate venture to think of as an investor. Arguably, network effect has become the toughest competitive advantage which most companies strive to build on, and Facebook has really leveraged its network excellently (Karabulut, 2013).
Currently, Facebook is boasting of 2.2 billion active users per month, WhatsApp following at 1.3 billion average users, messenger 1.2 billion while Instagram has over 800 million. Each of these apps is meaningfully growing and improving in terms of monetization, a double positive (Gummerus, Liljander, Weman & Pihlström, 2012)
Data is everything, and with the trend of expansion which has been registered by the company, its stock is likely to thrive for more years to come. This is therefore an opportunity for a sustainable investment.
References
Duarte, F. B., Machado, J. T., & Duarte, G. M. (2010). Dynamics of the Dow Jones and the NASDAQ stock indexes. Nonlinear Dynamics, 61(4), 691-705.
Gummerus, J., Liljander, V., Weman, E., & Pihlström, M. (2012). Customer engagement in a Facebook brand community. Management Research Review, 35(9), 857-877.
Karabulut, Y. (2013). Can Facebook predict stock market activity?.
Kirkpatrick, D. (2011). The Facebook effect: The inside story of the company that is connecting the world. Simon and Schuster.
Tihanyi, L., Johnson, R. A., Hoskisson, R. E., & Hitt, M. A. (2013). Institutional ownership differences and international diversification: The effects of boards of directors and technological opportunity. Academy of Management Journal, 46(2), 195-211.