Facebook Stock Hits New Highs As Messenger Gets 1 Billion Users
It is less than a week before social-media juggernaut Facebook (FB) - Get Report reports second-quarter earnings, but already the stock looks likely to rocket higher.
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On Wednesday, the company said that its messaging application, Messenger, had crossed the 1 billion user threshold, "making Messenger one of only a handful of apps worldwide that touch so many lives," according to a Facebook blog post.
Lucky for the company that it owns one of the rare others, WhatsApp, which hit the 1 billion mark in February.
This announcement pleased investors, sending the stock to new highs.
Facebook hasn't truly monetized Messenger along with Instagram and WhatsApp yet, but it is only a matter of time.
This year at the F8 developers conference, Chief Executive Mark Zuckerberg laid out his 10-year vision for the company, which centers around Messenger becoming the "one app to rule them all."
He intends for Messenger to become an e-commerce platform in its own right, and already companies are jostling to sell their wares via the app's chatbot capabilities.
Messenger users can order a pizza from Pizza Hut, owned by Yum! Brands, or flowers from 1-800-Flowers.Com, using the app's technology. And though Facebook isn't charging companies to use Messenger's services for e-commerce purposes, that will likely happen at some point, not to mention the advertising space that the company could sell on the app's display.
Questions about monetization aside, Wednesday's announcement drove Facebook stock to a new all-time intraday high, though it has fallen a bit on Thursday.
But there is still room for investors to get in on Facebook.
This company is a game-changer in the way that people interact online. And in its own way, Facebook has revolutionized daily life, as well.
Zuckerberg has big plans for the company and its proprietary apps, and with Wednesday's announcement, those are under way.
As Facebook continues to build its business with Messenger an integral part of it, the stock remains a great long-term play for investors who want to see profits from an online revolution. Look for any dips to get in on Facebook's stock, and keep a watchful eye on next week's earnings announcement.
During the first quarter, the company's revenue and net income both soared. History just might repeat itself.
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.