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Facebook (FB - Analyst Report) continues to grow through acquisitions, the latest being SportStream. The start-up company engages in the analysis of social media mentions on sports, which in turn helps to provide clean data access to news outlets and teams.

Although the terms of the acquisition are not clear, SportsStream will continue to work with its fifty plus stuff. The main idea behind this acquisition is to bring more Facebook chat-related data on TV and digital news, which will help more people to nurture their athletic interest.

Facebook has expanded through accretive acquisitions, which have opened several growth avenues for it. Moreover, the company is looking to add innovative features to its social media platform to enhance its popularity and attract customers.

The role of acquisition has been very significant in generating revenues for Facebook over the last couple of years. The acquisitions of Snaptu, Instagram, Face.com, Lightbox, Glancee, Threadsy and Parse expanded its content and applications for desktop as well as mobile phone. Recently, the company acquired the assets and technical team of the U.K.-based software verification company, Monoidics.

Moreover, the Atlas Advertiser Suite acquisition from Microsoft strengthened its position in the online ad market. We believe that the company will continue to pursue strategic acquisitions in order to strengthen its product portfolio as well as customer base, going ahead.

Further, the recently launched internet.org project in association with Qualcomm (QCOM - Analyst Report) and other technology companies, if successful, will aid the company. It is aimed to connect nearly 5 billion people who do not have access to the Internet.

Although Facebook is favorably placed, issues like other modes of advertisement and communication and increasing competition has also affected other social media stocks like LinkedIn Corp. (LNKD - Analyst Report) and Yelp Inc. (YELP - Snapshot Report).

Facebook, currently, has a Zacks Rank #2 (Buy).

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