Facebook Inc. Stock – Will It Continue To Surge?

By Christopher Morris

Both technology stocks and the social media sector have been facing serious commercial challenges recently. In fact, many of the biggest names in social media have struggled to ever demonstrate profitability, most notably Twitter (TWTR). But Facebook Inc (Nasdaq:FB) continues to deny these conventions and trends, delivering a profitability and share price viability that has been the envy of many of its competitors. Even in a relatively quiet year for this particular niche, Facebook stock has climbed over 7 percent since the beginning of the calendar year.

Facebook share price growth

This comes on the back of a thirty four percent increase in the Facebook Inc share price in 2015, with the stock having grown phenomenally by nearly 200 percent since it was initially offered publicly back in May 2012.

So the debate with regard to Facebook has been whether this already incredibly successful stock could actually shoot higher still. This may seem unlikely considering the fact that it has been difficult for social media companies to compete in the existing marketplace. However, some analysts believe that FB still has great potential, with Brian Belski, chief investment strategist at BMO Capital Markets, recently suggesting that the time has come for investors to once more add technology stocks to their personal portfolios. Belski particularly recommended Facebook, and is not the only Wall Street analyst to be bullish on the stock future of the social media giant.

Wall Street analysts price Facebook Inc. stock at a median of $135; 20 percent higher than the price the shares trade at today. And while this may be surprising to some market observers, there are clear reasons for the faith in the future of the company.

Instagram growth

Firstly, the acquisition of the photo-sharing website Instagram is proving to be extremely successful for Facebook. Instagram is something of a phenomenon in the social media space, with advertising growth on the website been nothing short of staggering. The youth-oriented social media site has managed to acquire 200,000 advertisers in just the six months since first launching this aspect of the website.