For Immediate Release
Chicago, IL – March 13, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include:Facebook (FB - Free Report) , Netflix (NFLX - Free Report) and Tencent (TCEHY - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy Cheap Facebook (FB - Free Report) on Crypto, WeChat-Style Push?
Shares of Facebook have soared over 31% this year to crush the S&P 500, double its industry’s climb, and nearly match FAANG peer Netflix’s 33% jump. Despite this climb, Mark Zuckerberg’s company remains in the headlines and faces backlash in Washington over its use of user data and control over the spread of information.
Yet, the company’s user base continues to grow at a time when marketers have fewer advertising options, which should keep Facebook humming along for years to come. Plus, Facebook is reportedly set to jump into the cryptocurrency market and Zuckerberg wants to try to become more of a private messaging, payments, and e-commerce platform, akin to Chinese powerhouse WeChat.
Facebook is currently developing a cryptocurrency offering that would be linked to the value of traditional currencies, according to reports from Bloomberg and other outlets. The social media powerhouse wants to introduce a way for users to pay for things through its platforms.
On Monday, Barclays analyst Ross Sandlertold clients that Facebook’s cryptocurrency push could generate as much as $19 billion in additional revenue by 2021, with the base-case set at $3 billion. Clearly, there are real challenges to a successful implementation of a Facebook currency, which include trust and security concerns, not to mention the challenge of convincing people they should convert their Money into “Facebook Coin.”
Meanwhile, Zuckerberg detailed plans in a blog post last week about how Facebook could start to focus on private encrypted messaging, payments, and other services. The move would shift Facebook more toward Tencent’s WeChat model, which allows its roughly 1 billion users to chat, order food, buy tickets, make dinner reservations, shop, and much more.
Chinese giant WeChat’s popularity and do-everything abilities helps make actual mobile devices from the likes of Xiaomi less important. Still, it remains unclear how serious this push toward a more personalized one-stop shop for personal communication and shopping is. But investors will likely be pleased by anything that diversifies Facebook’s business model.
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