The Irrational Exuberance Known As Facebook – Facebook (NASDAQ:FB) | Seeking Alpha

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Summary In a recent event, Mark Zuckerberg predicted 5 billion Facebook users by 2030. The current stock price leave no room for error. India is the latest country to create obstacles in Facebook’s growth plans. Facebook (NASDAQ:FB) is a stock that has been firing on eight cylinders for its entire existence as a publicly traded company, and shareholders have been rewarded. But one needs to ask if this dream ride can continue. Headwinds often come when they are least expected. In the beginning of 2016, Facebook stock saw a correction along with the rest of the equities markets. Recently, however, Facebook shares have seen a nice rally. While fact checking to see what could have precipitated the rally, I came across an article where Mark Zuckerberg predicted that by 2030 he plans to have 5 billion people on Facebook. Let’s look at that claim. As reported in this Telecom Drives’ article, Ericsson (a smartphone manufacturer) released the Ericsson Mobility Report where it claims that 70% of the world’s population will be using smartphones by 2020. I am always skeptical when a manufacturer issues trends for its business. I would much prefer to see an independent study reach this conclusion. If we do, however, use Ericsson’s data as valid, one would logically expect the trend to continue and reach 75%(?) in 2030.

Source: The Irrational Exuberance Known As Facebook – Facebook (NASDAQ:FB) | Seeking Alpha

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