Will Facebook Stock Soar As Teens Return?

Facebook (NASDAQ: FB  ) stock may stage another rally with teens coming back to the social network, Senior Tech Specialist Tim Beyers says in the following video.

Forrester Research asked 4,500 teens about their social media usage and found that 8 out of 10 use Facebook at least once a month while nearly half said they use the site more today than they did a year ago. Higher usage should lead to higher engagement, which could, over time, boost ad revenue.

Teens are a key catalyst, Tim says. Not only do they tend to be flush with disposable income, but they're also more receptive to the sorts of mobile ads that have become Facebook's bread and butter. In a 2011 study by Nielsen, roughly 60% of teens surveyed said they "always" or "sometimes" look at mobile ads.

Yet the good news doesn't end there. Forrester says Facebook ranks as teens' most-used social platform, followed by Instagram, Snapchat, Twitter, Vine, and finally WhatsApp. That's an impressive share of a key audience with plenty of spending power, and it may help to explain why Facebook chief Mark Zuckerberg was willing to pay $19 billion for WhatsApp.

Now it's your turn to weigh in. Are you engaging with Facebook more? Are your kids? Please watch the video to get the full story, then leave a comment to let us know your take, including whether you would buy, sell, or short Facebook stock at current prices.

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  • Report this Comment On June 27, 2014, at 9:59 PM, BillFromNY wrote:

    It can be scary to consider the people who are in charge of our finances. A report comes out claiming that teenagers are leaving FB in droves for other social messaging platforms. About a million person-hours of time is devoted to producing many articles looking at this phenomena and every possible significance that it may have.

    Then another report appears saying that FB is more popular with teens than ever and another million person-hours are devoted to this.

    This is being reenacted in the 3D printing area with respect to the growth rate of this sector now and in the future. One respected analyst group came up with a percentage that is kicked around by everyone, only to be followed by a report from another research firm giving the growth rate about 10 percent higher. How much time and ink is devoted to all this?

    (Comment meant to be jovial.)

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