Facebook (NASDAQ:FB) is an incredible company, there's no denying that. Over the years, the company has grown from a private social network to the largest social networking site in the world. Not only that, they're taking their business offline with Oculus, the virtual reality headset, and continuing to grow in other ways. However, one of the biggest drivers on the stock moving forward is likely to be messenger apps. Today, we'll talk briefly about the FB success story, why mobile apps are likely to take the company to the next level, and what we can expect to see from the stock moving forward. So, let's get right to it...
The Story
FB has one of the most impressive growth stories in the history of business. The company was started while Mark Zuckerberg was in college. The idea was to create a social atmosphere that was private, one that only college students could be part of. Shortly after launching, the invite only social network blew up in popularity. Soon enough, FB went from being a private social network to one that everyone could enjoy.
From there, Facebook took over the world so to speak. It quickly became the largest social network online, putting others like MySpace and Twitter to shame. Today, the social network hosts about 1/6 of the world's population and has evolved from a simple social experience to a way of life for many. Today, consumers use FB not only to connect with friends and family, they use it to find jobs, as a dating site, to play games, watch videos, keep an eye on the news, connect with brands, and more! However, FB didn't stop there.
Mark Zuckerberg has a knack for picking the latest and greatest things, and... well... buying them. So, when virtual reality first hit the market, Facebook purchased Oculus, taking the company offline and putting it's products literally in the hands and on the heads of consumers. Not to mention, Whatsapp. When Zuckerberg saw the most popular mobile messaging app on the market, FB purchased it. Believe it or not, I believe that Whatsapp and Messenger, two of Facebook's most prized products are likely to take the company to the next level.
Messenger Apps: The Next Big Thing
At the moment, it is estimated that about 1.4 billion people use messenger apps to get in touch with and have conversations with friends, family, and brands. However, that number is expected to grow exponentially. In fact, experts expect that messenger apps will reach 2 billion consumers by 2018, which works out to roughly 80% of the total number of smartphones. Well, when it comes to messenger apps, FB takes the cake. Between Whatsapp and Facebook Messenger, FB owns 2 of the top 5 messenger apps available today; meaning that they are likely to take a large portion of the market share in the industry. Given how large the industry is, and the plans from FB to connect an interesting advertising model to these apps, this is likely to lead to tremendous amounts of revenue for the company.
What To Expect
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Facebook. In this history of social media, there has been no other company that has had the ability to captivate an audience quite like Facebook has. Now, with messenger apps gaining in popularity and FB owning the lion's share of the market there, more profits are coming down the line. Not to mention Oculus and everything else the company has going for it. All in all, I'm incredibly impressed not only with what we've seen, but what we can expect to see from FB moving forward.
Where do you think FB is headed and why? Let us know your opinion in the comments below.