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Facebook or Google – Which Stock Should You Trade?

10 September 2017 No Comment

Facebook and Google are 2 of the most powerful companies in the world. Although it trails behind Apple, whose market capitalisation of $750 billion is worth more than the entire automotive industry, Google’s value of $650 billion is more than 4 times higher than the entire airline business.

Social media powerhouse Facebook and multinational technology giant Google are 2 of the most visited websites in the world. They capture the bulk of global online advertising spending, generating billions of dollars in profits every year, according to the recent release of their quarterly results.

Facebook earnings have increased by about 45% during the last quarter, to $9.3 billion, while Google’s parent company, Alphabet, recorded an increase of more than 20% during the same period. According to research company eMarketer, the 2 tech giants are expected to generate $106 billion from advertising in 2017, accounting for nearly 50% of worldwide spending, and more than 60% of the U.S. market.

There are several factors that have helped position these companies as the planet’s most powerful online marketers. Both Facebook and Google launched at the right time, when there was little competition in their respective markets. They have each heavily invested in new technologies, effectively making the digital advertising market a duopoly, and have used powerful algorithms and advanced machine learning to process huge volumes of data to target their audiences with highly personalised advertising messages.

The dominance of these companies and their lack of serious competition make them appealing stocks to trade. It’s difficult to determine which is the “best buy” out of the 2, as they both have global standing, huge financial resources, and sky-high valuations. Even though they compete in the same digital advertising market, they operate at different levels and in distinct ways.

Investing with stock trading brokers worldwide such as UFX.com will help you take advantage of these tech giants’ stock price movements.

Facebook and Google are often considered “core stocks” in a trader’s portfolio. Before opening a position on any stock, traders tend to wait for the asset to ‘catch its breath’ and reach a key support level to enter the market at the most advantageous moment.

If you plan on trading Facebook stock, industry-leading trading platform UFX recommends that you monitor the following daily levels: $166.30 and $163.89. With regards to Google stock, traders should observe the $906.78 and $896.65 daily levels. Always remember to use trading tools such as stop-loss and take-profit orders and to leverage in accordance with market conditions.

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