Facebook Inc (FB) Share Price To Hit $250, Here’s Why

Facebook Inc (FB) Share Price To Hit $250, Here’s Why

Analysts have been pondering what will happen next to the price of Facebook Inc (FB) stock, and they believe things are looking up.

Play Quizzes 4

According to David Zeiler of Money Morning, the social media behemoth is in a great position from which to profit from the next revolution in tech. Zeiler says that the stock is set for another bull run even after its stellar performance in the past few years.

Morningstar Investment Conference: Gabelli Funds On Where To Invest Amid Inflation

InflationNumerous news headlines have trumpeted major concerns about inflation, which has been at 40-year highs. But how should investors handle inflation as it pertains to their portfolios? At the Morningstar Investment Conference on Monday, Kevin Dreyer, co-CIO of Gabelli Funds, outlined some guidelines for investing in the age of inflation. Historic inflation Dreyer started by Read More

Virtual reality to drive Facebook (FB) share price to $250

However this growth will not be powered by social media, where Facebook Inc (NASDAQ:FB) has become dominant. Rather it will be inspired by another, young industry that will boost the company stock price past the $250 barrier.

Now you may be thinking that is around double its current price, and you would be right. It means that you could potentially double your money if you buy shares in Facebook Inc (NASDAQ:FB) today.

The driving force behind this growth will be virtual reality. Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg has been aware of the potential for years. Not for nothing did he splash out $2.1 billion on Oculus Rift in 2014.

Some analysts believed that the acquisition was a bad idea from Zuckerberg, and claimed that Oculus Rift was nothing but a glorified gaming platform. However the acquisition means far more than that.

“One day, we believe this kind of immersive, augmented reality will become a part of daily life for billions of people,” Zuckerberg said at the time. It now looks as though he knew exactly what he was doing.

How will Facebook (FB) monetize virtual reality?

Facebook Inc (NASDAQ:FB) is now in a perfect position to profit from the growth potential of virtual reality in coming years. The company’s acquisition of Oculus Rift sparked a round of investments in virtual reality that looks set to stoke a boom in the industry.

For six quarters before the Facebook Inc (NASDAQ:FB) deal, 50 investments for a total of $316 million were made. For six quarters after the acquisition, $1.1 billion in investments were made over 91 deals.

It also has a strategy to make Oculus Rift the most important platform in that market, beating off rivals such as HTC. Facebook’s experience in social media will help it to make virtual reality a social experience rather than relying only on games.

Facebook Inc (NASDAQ:FB) also stands to monetize virtual reality to a greater extent than its rivals. This is due to the company’s $20.6 billion cash reserves, which can be used to fuel the growth of Oculus Rift. The social media giant also has vast experience in driving ad revenues, and virtual reality advertising could boom as the platform becomes more common.

The full report is available to read on Money Morning, where Zeiler sets out a detailed case for buying Facebook stock due to future growth in virtual reality.

Updated on

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. <i>To contact Brendan or give him an exclusive, please contact him at theflask@gmail.com</i>
Previous article How Brexit opened up the Pandora’s box of Italy’s banking malaise
Next article Connecticut Energy Costs Nearly Double Those Of Washington

No posts to display


  1. at 250 the market cap would be close to Apple, but FB is nowhere near Apple’s profit/revenue. Even if FB has lots of opportunities for growth. It’s already priced into the share price. Avoid stocks that are priced for perfection.

Comments are closed.