What Market Analysts Overlook about Facebook

Why FB is the best Tech Stock. Period.

Published in

DataDrivenInvestor

5 min readSep 11, 2020

My Stock Performance September 11, 2020. Shoutout to the Federal Reserve

I write code and build tools. I have demonstrated my machine learning and math abilities over my work experiences. I am not a financial guru. I read about the markets. I have money invested but my approach is as simple as it comes: Buy and Hold solid companies. No charts, no hours spent looking at trends. It’s worked out pretty well. Now I shall integrate my tech background with my interest in investing to present to you 2 of FaceBook’s verticals that are overlooked by traditional financial gurus, mostly because of ignorance. Read on to find out.

What are these secrets that everyone overlooks at when analyzing FaceBook

Stock pickers will point to 2 things in buying Facebook. Its monopoly over social media (our attention) and fantastic past performance. FB management has been exceptional at identifying new social media and integrating them into FB juggernaut. The purchase of IG, (attempt at)Snapchat, and WhatsApp seemed too much at the same time, but have since played out great for all parties involved. None of this is new. Now for the reason, you clicked:

ReactJS

React JS is Facebooks extension on JavaScript. To those of you that do not code, the web runs on JavaScript (called JS by us coders). JS is extremely powerful allowing for many benefits and is currently the most popular programming language on the planet. And in JS we have 3 very big frameworks, that allow programmers to be able to create complete JavaScript applications: React, Angular, and Vue. If you’re interested in the usage reports check out this site but in a nutshell React is the most popular language by far, and it is only growing. It dominates almost every metric. For another example of React’s lead look at this neat graphic stacking React against Vue which is another big 3 framework.

Since I am not primarily a web developer, I put a lot of thought into choosing the best framework for my online data structures visualization project: datastructers.dev. So far it has been a good experience.

React is not just a web development platform either. React Native is used to develop mobile applications, and React VR is by far the most advanced Virtual Reality and Augmented Reality. These are both important markets, with great growth potential. Facebook’s lead in these areas highlights the forward-thinking nature of the management and the technical brilliance of the engineers.

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Machine Learning Research

Look at all the areas where ML dominated

If you’re living under a rock and reading this through smoke-signals, Machine Learning is a big deal. It has changed the business model of many companies and industries and will continue to do so. FB relies heavily on data analytics and machine learning, so it should come as no surprise that they have extensive machine learning investment and research. As someone who takes great interest in ML research, I can verify that they are ahead of the curve. Their work on translating between different programming languages is way ahead of the curve and demonstrates their ability. If you’d like to learn more about this landmark paper, be sure to follow me on Medium and other social media. I will be releasing an article very soon to break down the paper. To drive home the importance of ML here’s a fun stat: According to the World Economic Forum’s (WEF) 2018 Future of Jobs report ML will create 133 Million Jobs. And with the possible exception of Google, Facebook has the biggest Machine Learning research among all major tech firms.

What Does this mean

Keeping it simple: don’t overlook Facebook. Not only have they completely dominated the social media game, but they’re also a company with fantastic management that has placed the company along 2 other verticles that will keep it growing. React is amazing for Web Development. React VR is the best tool for bringing virtual reality to the web. And it is coming. Big companies are already. Just Google and you’ll see investments from Alibaba reaching to the create VR showrooms. All big companies are investing into VR and AR, and FB has positioned itself well by providing an excellent tool. And I’m sure I don’t need to sell you on the benefit of cutting edge AI. These are 2 solid fundamentals in other companies, but when combined with Facebook’s hold on Social Media and thus our attention, these become extreme money makers.