Group DB 1
Standard & Poor’s NetAdvantage
Liberty University
Dr. Henegar
March 22, 2016
Facebook is the world’s largest social media company and property whose platform employs developers who build apps that are integrated into websites that are personalized (Business Summary). Facebook Inc. has predicted a positive outlook for the Internet Software and Services sub-industry for the next 12 months. They believe this is due to an increasing of budgets being committed to the internet as opposed to “traditional media.” The U.S. accounts for more than a third of online advertising and as such, corporations are contributing larger percentages to advertising budgets as people spend more time online. “In 2015, the S&P 1500 Internet Software & Services Index rose 32.3%” (Sector Scorecard:GICS Sub-Industry Summary). “Internet based businesses such as Facebook, help facilitate a broader economic activity across a series of economic agents. In 2014 Facebook-a company with an approximately $8 billion costs based enabled global economic impact of $227 billion” (Facebook's Gloabl Economic Impact). Having a broad economic impact allows for more revenue and jobs that extend outside of just Facebook’s own company. Based on these findings Facebook’s economic status appears to be in good shape. Looking at Facebook’s revenues (which have increased from $1,246,600,000 in 2014 to $1,792,800,000 in 2015), Earnings per Share (Which have gone from $1.10 in 2014 to $1.29 in 2015), Income Statements and other misc. financial data that have continued to rise over the past several years this seems like a good company to invest in. Marketwatch.com says there are 3 main reasons why one should invest in Facebook and they are as follows. With their 1.2 billion registered users, Facebook has become central to people’s lives. “To many Americans, Facebook is perceived as a kind of bulletin board, helpful in arranging gatherings and posting...