Conventional wisdom held that as more parents adopted Facebook, their teens would run away from the social network. However, a recent report by Forrester Research shows that teens are overwhelmingly liking the social network.
In the report, Nate Elliott and Gina Fleming write: “Since Facebook's CFO admitted in 2013 that young teens were visiting the site slightly less frequently, most marketers have accepted as fact that teens are fleeing the site en masse. But that's simply not true. Forrester's latest U.S. online youth survey shows that Facebook remains by far young users' favorite social network.”
According to Forrester’s research, 80 percent of the 4,517 of the 12-to 17-year-olds surveyed are on Facebook, with 28 percent saying they’re on the sight “all the time.”
“That number basically comes down to peer pressure,” said Gina Sanchez, founder of Chantico Global. “Kids are like lemmings – just like some investors are – and they’re going to use whatever all of their friends use.”
Facebook continually beats estimates, said Sanchez, a CNBC contributor. “As they continue that dominance,” she said, “the outlook for Facebook looks pretty good.”
Steven Pytlar, chief equity strategist at Prime Executions, is also bullish on Facebook based on the stock’s technicals.
“The charts do look positive,” Pytlarsaid. He sees the stock as being in an uptrend since August 2013.
“What an uptrend defines is really a company that is building value and is being rewarded for it over time,” Pytlar said. “Buyers are slowly willing to bid a higher and higher price.”
A selloff in March brought Facebook shares down to the mid-$50 range only to move sideways for a couple of months. However, it stayed above Pytlar’s uptrend line for the stock.
“That’s also positive,” Pytlarsaid. “It indicates buyers are still there. They’re still accumulating. And, technical projection gets us back to those old highs, about $72.”
To see the full discussion on Facebook, with Sanchez on the fundamentals and Pytlar on the technicals, watch the above video.