Facebook, Inc (NASDAQ:FB) Continues to Illustrate FB Stock’s Value With Events

- October 7, 2016


Days after Facebook, Inc (NASDAQ:FB) decided to take on eBay (NASDAQ:EBAY) with its Marketplace launch, Mark Zuckerberg & Co is spinning off another asset, Events. As Facebook’s vision becomes clearer with Marketplace, the Messenger Platform, and now Events among others, there is no question FB stock is worth its seemingly overvalued price.

Facebook: A combination of valuable networks

In technology, network size and ecosystems mean everything. In theory, you can find ways to monetize a large network, but turning an idea into a large network is a different story. That’s why Pinterest has an $11 billion valuation with over 100 million MAUs, or why Snapchat has a $25 billion valuation with 150 million people using it everyday. Hell, throw Facebook’s $20 billion plus purchase of WhatsApp into the mix.

Nevermind that none of these networks have great monetization practices in place. Investors know that monetization will come with a massive network that people use.

Yes, the $370 billion market capitalization that FB stock supports is on a different level, but that’s only because Facebook continues to prove it is not just one big network. Instead, it is a collection of enormous networks that can be spun off as individual properties. It’s this fact that creates enormous potential for creating long-term revenue and profits.

Facebook Events rolls out to iOS

With that said, Facebook Events can now be found on iOS, and will soon be available on Android. In a blog post, Facebook says “whether you’re looking for something to attend this weekend or just wondering what’s happening in your area, Events will help you get there.”

This is a service that has been around for years on Facebook, but it was always combined with the larger platform. Therefore, users did not notice they were using it. However, 100 million people use it everyday, and 650 million every month! That is incredible usage, and what’s remarkable is that Facebook will spinoff Events and never miss a beat on “Facebook”.


Instead, Events instantly becomes the most used and most popular local services and events App. It takes a bite out of Yelp, Google, and maybe even TripAdvisor. Furthermore, Events instantly creates value for Facebook and gives it even more ownership of your smartphone.

FB stock looks like a good bet

Keep in mind, Facebook already controls the majority of the time you spend on smartphones and tablets. Its Facebook, Messenger, Instagram, and WhatsApp apps are all among the most used on iOS and Android. Events has the potential to quickly join that list.

Lastly, it creates value by allowing event sponsors, local businesses, and organizations to reach people in local markets, to inform the public of coming events. It instantly becomes easier and more effective to promote concerts, county fairs, sports events, marathons, and everything in between.

All things considered, FB stock may seem overvalued at $129/share. However, with its explosive growth and the likelihood for accelerated ad growth as it spins off successful services, paying 25x next year’s earnings for FB stock does not seem like a bad idea long-term.

This entry was posted in Technology, Timely Analysis Bookmark the permalink.
RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

One Trackback

  1. By Emagrecer Rapido on June 29, 2017 at 10:33 am

    Emagrecer Rapido

    Facebook, Inc (NASDAQ:FB) Continues to Illustrate FB Stock’s Value With Events

Post a Comment

You must be logged in to post a comment.







Join the 100s Who Beat the Market with a BNL Membership

See What Current Members Are Saying

My Complete Access BNL Membership Includes

  • No contract. Guaranteed results. Cancel anytime.
  • Unrivaled Performance. The BNL Portfolio has outperformed the S&P 500 by 150% since October 1, 2015
  • Access. You know what goes in the BNL Portfolio, David’s Dividend Portfolio, and Eddy’s Options.
  • Alerts. You know when a trade is made in all three managed portfolios with application, text, and email alerts
  • Transparency. Verifiable trade records for the BNL Portfolio, David’s Dividends, & Eddy’s Options
  • Research. We have coverage on more than 50 companies
  • Results. Our 10 highest rated stocks outperformed the market by 134% last year
  • Live Chat. Join 100s of other members in an exclusive Members Only section with Chat
  • Growth. We are the fastest growing financial research platform in our industry.
  • Build My Portfolio. You give us your goals, we help you get there
  • Premium Content. Unlock hidden sections in each article. You also get Value of the Month selections and BNL Research Reports.
  • Community. We have professionals and beginners; retirees and college students; the 99% & 1%, but here, we are all equal.


Like what you see? Sign up for our newsletter and get the latest stock picks straight to your email!

%d bloggers like this: