Facebook Stock Predictions: Facebook Could Boost The Online Food Ordering Industry

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First

FB Stock Prediction


  • Facebook wants its almost 2 billion users to have the convenience of instant online food ordering.
  • A new feature on Facebook’s desktop and mobile navigation menu is Order Food.
  • Facebook will probably make money from this feature through increased user engagement.
  • Restaurants and fast-food firms will also probably pay Facebook to get priority listing on search results when Facebook users click the Order Food button.
  • Facebook remains a great long-term investment opportunity. Facebook’s stock also has positive market trend signals based on algorithmic forecasts.

Facebook (FB) has seen its stock price quadruple since its IPO five years ago. However, I am still endorsing FB as a Buy for growth-minded investors. Facebook’s recent moves showed it can diversify outside its core advertising business. Facebook is spearheading Virtual Reality with Oculus. It’s also trying to compete with YouTube and Twitch’s dominance in e-Sports.

Further, Facebook is now trying to popularize online food ordering. There are other online food ordering firms. However, only Facebook has constant engagement with its 1.86 billion users. The new Order Food button on Facebook’s navigation panel (found on desktop and mobile versions) could make Zuckerberg’s company the world’s ultimate online food ordering portal.

(Source: TechCrunch)

The Order Food button is Facebook making sure its users do not venture out of its website or mobile app to satiate their hunger. Providing new services that keep people continuously logged on to its social network is Facebook’s ultimate goal. The longer people stay logged on to Facebook, the more time there is for Facebook to track their personal data for advertising purposes.

Going forward, Facebook will also likely benefit from local restaurants and fast-food stores paying fees to get to the top of search results when someone clicks the Order Food button. The restaurant that offers the highest bid to Facebook will frequently come up no.1 in search results from Order Food button clicks.

If the local restaurant can afford to buy ad placements or sponsored stories on Facebook, it could also eventually pay to get a higher listing on Order Food search results.

(Source: TechCrunch)

Local Businesses Also Benefits

Local restaurants will also benefit from Facebook’s Order Food button. Restaurants will have no need to maintain their own online or phone ordering systems. Since Facebook users could now order food from the comfort of their homes, restaurants will also have less need for manpower and office space.

They also won’t have to worry about delivering the food themselves. The Order Food service is likely a part of Facebook’s collaboration with Delivery.com and Slice. The Order Food service will definitely come with delivery fees. Delivery.com and Facebook will likely share the revenue from delivery fees from food ordered.

Anything that helps Facebook gain revenue outside of advertising is always welcome. Facebook’s future is always safer when it could diversify itself.


A housewife could just order lunch and dinner every day.  Freed from the tedious chore of cooking, she will have more time for Facebook and/or Instagram. Consequently, the longer people stay active on Facebook, the more advertisements and Sponsored Stories can be delivered to them.

Going forward, I also foresee Facebook implementing other online ordering systems. The Order Food button is just the beginning. Facebook will eventually help its users order things aside from food. Every day necessities like diapers, milk, soap, lotion, and other consumables could be ordered through Facebook’s platform. Local and national retailers alike will benefit from Facebook’s venture toward becoming a portal for online food orders.

The Order Food button could therefore be only the beginning of Facebook’s emergence as the lead facilitator of online ordering of household and office suppliers. It will be more convenient for a user to order via Facebook rather than to go out and drive 20 or 30 miles just to buy diaper.

The almost 2 billion Facebook users represent a massive pool of consumers, Vendors will gladly accept online food or products orders from.

I strongly recommend Facebook to investors. The algorithmic forecasts are also signaling a buy for FB.

Furthermore, there are 32 TipRanks-tracked analysts who still rate FB as a Buy. Their average 12-month price target for Facebook’s stock is $172.22. FB currently trades below $150. Going long on FB now could prove to be rewarding.


I Know First Algorithm Heatmap Explanation

The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

Past I Know First Success With FB

I Know First has been bullish on FB shares in past forecasts. On November 5th, 2015, an I Know First Analyst wrote a bullish article for FB. Despite the potential threat of network level ad-blocking, that theory was quashed. Moreover, it was only an alleged attempt to force FB to disclose their advertising revenue. Our analyst expected FB to continue their strong growth in mobile and desktop advertising. Since then, FB shares have gained 45.2%. See chart below.

This bullish forecast for FB was sent to I Know First subscribers on November 5th, 2015. To subscribe today click here.