5 Big Reasons Why Facebook's Powerful Run Isn't Close to Being Over

Shares of the social media giant have surged 32% year to date, trouncing the Nasdaq Composite's 15% gain.

1.Facebook is dominating in the ad sales arena.
Alphabet Inc.'s Google and Facebook consumed 71% of all U.S. digital advertising sales in the first quarter, according to data compiled by Pivotal Research Group media analyst Brian Wieser. That compared with 69% for the first quarter of 2016 and 64% as of the first quarter in 2015.

2.Facebook's user numbers are insane, and continuing to grow. The company is closing in on the 2 billion monthly active user mark. More users, more money to Facebook.

3.Wall Street is now looking toward a huge 2018 for Facebook. With likely over 2 billion monthly active users by year's end, 2018 is shaping up to be another strong year for Facebook.

4.Points out the Action Alerts PLUS team in a new note, "Although we have been seeing an overall downtrend in the technology sector [stocks], we view Facebook as having a strong outlook, and are already thinking about its prospects in 2018."

5.Facebook may want a piece of the lucrative original programming turf being dominated by Netflix (NFLX) The company's move to create a native video ecosystem includes short-form series from digital producers and some television-quality "hero project" series.

Source: Bloomberg
Trader I. Ivanov

Read more:

• J.P. Morgan Chase beats profit and revenue expectations
• Goldman’s stock drops as profit falls below expectations
• The top 5 dividend shares for each investor
• NDX is possible to form a “Head and shoulder” formation
• Apple forms a triangle formation