Facebook stock may stage another rally with teens coming back to the social network, Senior Tech Specialist Tim Beyers says in the following video.
Forrester Research asked 4,500 teens about their social media usage and found that 8 out of 10 use Facebook at least once a month while nearly half said they use the site more today than they did a year ago. Higher usage should lead to higher engagement, which could, over time, boost ad revenue.
Teens are a key catalyst, Tim says. Not only do they tend to be flush with disposable income, but they're also more receptive to the sorts of mobile ads that have become Facebook's bread and butter. In a 2011 study by Nielsen, roughly 60% of teens surveyed said they "always" or "sometimes" look at mobile ads.
Yet the good news doesn't end there. Forrester says Facebook ranks as teens' most-used social platform, followed by Instagram, Snapchat, Twitter, Vine, and finally WhatsApp. That's an impressive share of a key audience with plenty of spending power, and it may help to explain why Facebook chief Mark Zuckerberg was willing to pay $19 billion for WhatsApp.
Now it's your turn to weigh in. Are you engaging with Facebook more? Are your kids? Please watch the video to get the full story, then leave a comment to let us know your take, including whether you would buy, sell, or short Facebook stock at current prices.
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The article Will Facebook Stock Soar As Teens Return? originally appeared on Fool.com.Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Facebook and Twitter. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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