Facebook stock has high volatility, which makes it a great investment for day traders. Its growth is expected to be rapid for the next three to five years, and the company has announced several plans for its future. The company will begin reporting its financial results from its Facebook Reality Labs unit on a separate basis in October 2021. This is a good sign, as Facebook still has many ideas for how to grow the company.
The recent price plunge comes at a bad time for Facebook. Facebook shares tumbled more than 11% in the past month, while other major stock indices saw declines of only a few points. This may be due to an announcement from the social network published on September 22, 2021, that highlighted the increasing cost of advertising and measuring campaigns on its platform. In addition, Facebook’s share price has been hit by Apple’s changes to its iOS privacy policies.
But there is good news for investors: Facebook’s advertising revenue has never stopped growing. Its profits are fueled by advertisements, and investors are confident that these earnings will continue to increase over the next few years. Despite the recent negative press, the company continues to grow its business. Its revenue will increase by about 35% year over year in the next five years, according to S&P Capital IQ.
The company’s metaverse business model is an interesting one, but it will require massive investments to get to break-even. It could take the company up to $50 billion before it becomes profitable. But there is no doubt that the concept is intriguing and has a good chance of achieving mass market adoption. Indeed, more than five million VR headsets have already been sold. However, some analysts still see the project as negative for the company.
By the middle of 2022, the price of Facebook stock will be $150, and it will hit $200 in 2024. In 2026, it will reach $300, and in 2030, it will reach $480. If it reaches the upper border of the gray zone, the price will resume its decline. This will occur until the trend line is crossed.
The next six months will see a gradual decline for Facebook stock price, though the fall won’t be as sharp as in the recent past. This means that the company won’t begin paying dividends until March. Therefore, traders should open their trades only when they see a bullish correction. This is the most important time to enter a trade. If the price does not rise, the bearish movement will try to close the gap.
Facebook’s time as a public company has been a rocky one. The company’s IPO didn’t have a big pop, and many investors decided to bail out, sending the share price plummeting. By August 2013, the share price had returned to its IPO level.