Is Facebook a Buying Opportunity Right Now?

Written by Monica Savaglia
Posted July 20, 2018

Data has been a huge topic of discussion over the past few months. And it’s about time that we stop being naive when it comes to the data we share with websites and companies.

I’m guilty of not reading the fine print or ensuring that websites aren’t sharing my information and my data with others.

Until recently, I never thought about the type of privacy settings that I had for my Facebook profile. And I never thought about what Facebook’s privacy settings even entailed. It’s something I never had to think about until more news kept cropping up about how Facebook sold user data to Cambridge Analytica.

Professor Aleksandr Kogan collected Facebook data from tens of millions of Americans on behalf of Cambridge Analytica. The firm that the professor had been collecting data for went on to work for President Donald Trump’s 2016 campaign. And that led to one very important question: Was this data used to help with Trump’s 2016 presidential campaign?

There’s a high possibility that the retrieved data could have had an impact on the 2016 presidential election. Professor Kogan had been building a personality app on Facebook. He'd gathered data from Facebook’s users and all those users’ friends, as well. There was a lot of data collected.

Facebook Security Settings

What You Don’t Know Won’t Hurt You

Studying behaviors and personalities of people and those they interact with on a daily basis could play a huge role in understanding how people vote. And it could help us in understanding the type of concerns that those people find to be the most important.

Investigations to get to the bottom of this misuse of personal data are underway. And they've had Facebook struggling to remind the public that it’s a company they can trust.

Damian Collins, a conservative member of British Parliament leading a parliamentary investigation into the misuse, said the following:

I think what we want to know now is who were those people and what access did they have, and were they actually able to take some of that data themselves and use it for whatever things they wanted.

Personally, as an observer of the investigations and a Facebook user, this isn’t good news. Obviously, there are some issues that need to be addressed and that we should start paying attention to. And that's especially true when it comes to the data that we share online and how that data could be used to manipulate or benefit others.

This kind of headline might make you wary of Facebook and its future, but that hasn't been the case at all.

Facebook is a mega-platform that had 2.19 billion monthly active users in first-quarter 2018. People will continue to use Facebook’s platform regardless of these headlines. It’s been a way for people to connect with others and communicate. Heck, it’s even a daily routine for some people.

According to a Statista report, 1.45 billion active users visit the social network site on a daily basis. There’s no way that these people will all stop using the site overnight because of a few bad headlines.

And that’s why Facebook is still a buying opportunity today...

Is Facebook Still a Buying Opportunity?

Back in April, Charles wrote about the investing opportunity that’ll come from Facebook’s recent “troubles.” Right now, Facebook is at a bargain price. Despite its recent headlines, Facebook won't be going anywhere. And that's especially true because government regulation is still most likely years away — if it ever happens.

What’s happening right now is the discussion of how data is shared and who has access to that data. There’s a lot to iron out when it comes to what kind of regulations would be best. And there’s a lot to consider as the government continues trying to make sense of the situation on its own.

Since Charles said Facebook would be a good buy at its bargain price, it’s gone up. On April 15th, when Charles wrote the article, Facebook was trading at $165.72. As I'm writing this, July 18th, it opened at $209.82. That’s a 26.6% increase.

Facebook continues to expand and develop its business model to keep it prosperous and relevant. And its stock will only continue steadily increasing.

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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