Goldman Adds Facebook To Focus List

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Goldman Sachs’ Derek R. Bingham views Facebook Inc FB as an “asset-light tech disruptor” that has the ability to leverage its “world-leading user base and mobile engagement to monetize long-term growth.”

Bingham added the company to Goldman Sachs’ Focus List for the Information Technology space.

Long-Term Share Gainer

With a large, “sticky” user base of about 1.7 billion MAUs and the accompanying volume of user data, the analyst believes that Facebook would be a “long-term share gainer” in the growing digital advertising market.

Bingham pointed out that users spend more than 30 minutes a day on average on Facebook apps, which represents approximately 30 percent of daily mobile internet use in the U.S.

“We believe this industry-leading engagement offers a myriad of ancillary future opportunities in areas such as Messenger app, Facebook M (virtual assistant) and Facebook Login,” the analyst stated.

Double-Digit Growth

Facebook has continued to deliver double digit growth in core engagement, as well as MAU and ARPU, which are its revenue drivers.

According to the Goldman Sachs report, “The company has a stated goal of running operations on 100 percent renewables, and initiated the Internet.org project to expand global internet access.”

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Posted In: Analyst ColorAnalyst RatingsDerek R. BinghamGoldman Sachs
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