Barclays sees major upside for Facebook if its secretive cryptocurrency plan works out.
One faction on Wall Street sees major upside for Facebook if its secretive cryptocurrency plan works out.
"Merely establishing this revenue stream starts to change the story for Facebook shares in our view," Sandler said. Facebook's current business model came under fire from consumers, politicians and advertisers last year. Its share price tanked after a series of snafus. For one, British political consulting firm Cambridge Analytica collected data on more than 50 million Facebook users without permission. Still, Facebook earnings have continued to increase, and the share price has rallied roughly 30 percent this year.
Barclays based its Facebook revenue estimates off of Google's digital distribution service, which is also the official app store for Android's operating system."Google Play," as it's called, generates $6 in"net" revenue per user now. Facebook could see a"similar cadence," across its nearly 3 billion users in 2021.
The major problem, according to Sandler, was that Facebook had to bear the interchange cost,"which negatively impacts the profitability of the business, especially when making high volumes of lower-value transactions."
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