Here I am going to analyze in short whether Facebook can continue to grow its revenue and profits at its latest very fast clip.
No. I do not think Facebook will continue to grow its revenue and profits as fast as it has. Its main market - global internet advertising will slow its growth to 15.5% in 2020 according to emarketer and the link provided: https://www.emarketer.com/content/global-digital-ad-spending-2019
Facebook's main revenue and profits and revenue driver is internet advertising. Yes, Facebook is trying to enter electronic commerce and financial services through payments. But as many leading high technology companies have shown, it is very difficult to win outside your area of root expertise, which in Facebook's case is internet advertising. As another option Facebook could try and expand its market share in internet advertising, but I do not think this is feasible given Facebook's already large market share in internet advertising.
Facebook's future slowdown in revenue and profits will have a negative effect on its stock price or at least slowdown Facebook's market capitalization growth.
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Petar
Vladimirov Posledovich is not liable for any investment losses incurred
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Petar Posledovich
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