Meta Platforms Inc (META)

[ray1010]

3 New Reasons to 'Like' Facebook
by Jim Cramer and Jack Mohr
09/11/15 - 03:03 PM EDT
Action: FB
Facebook (FB: Nasdaq) shares remain very attractive at current levels, especially given the company’s dominant mobile position and increasing importance to advertisers.

On that note, earlier in the week, the company posted a string of positive announcements helping to invigorate investor interest. First, Facebook indicated that it would be conducting a wide launch of Instagram ads, opening up the platform to businesses of all sizes everywhere. Ad testing has been conducted for the last couple of years, but this announcement serves as a push toward a larger audience, building the potential for $1 billion in revenue over the next year. The platform will also have additional ad capabilities, including: 30 second video ads, landscape photo and video, optimization tools for campaign management, and a new premium ad product to drive mass awareness.

Secondly, the company introduced new features updating Facebook Pages to make it easier for businesses to highlight information and reach their goals. The update is mainly geared toward small businesses and will help these companies build a mobile-friendly presence, which will ultimately lead to incremental ad dollars.

Lastly, the company also announced that WhatsApp recently surpassed the 900 million MAU (monthly average users) mark, showcasing the immense potential in the product. Remember, many called Facebook crazy for investing so much capital in Instagram and WhatsApp, but its first- class management team is ahead of the curve and knows what it needs to do in order to maintain its spot among the leaders.

Regards,

Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS

DISCLOSURE: At the time of publication, Action Alerts PLUS was long FB.