Companies with the Most Facebook Likes
Mike is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
When most people think of 'Facebook likes' they don’t consider how they affect the stock market, but many of the big names on Facebook (NASDAQ: FB) are also big names on the stock exchange. Companies like Ford and Coca-Cola are spending millions to gain “likes” on Facebook. Likes mean fans, fans mean long-term customers, and long-term customers mean extra cash rolling into the company coffers. So, who has the most Facebook fans and how have they been doing?
Facebook is actually the biggest player in its own arena, but while their number of likes is soaring, their stock value is slowly dropping. With almost 70 million Facebook fans to date, the stock may have been overhyped from the IPO. Facebook stock had an opening price of $38 and is now sitting at $32.17. Value picked up following the purchase of Face.com, a facial recognition technology that enables Facebook users to tag their photos. Unfortunately, it wasn’t enough to see them in the green since their stock market birth. Facebook is currently sitting cradling a loss of 18.39%. Big fans may mean big dollars, but in Facebook’s case, they may have to do some damage control to see themselves back in the green.
The fizzy sugar water loved around the world is also getting some love online. Coca-Cola (NYSE: KO) has a staggering 44 million likes. Their brand has been associated with the good times in life. They advertise during the holidays and big sporting events when everyone is having a good time. The combo of online and offline marketing has made them one of the most loved companies on the web.
Either Facebook users are getting younger or there are a lot of older fans of this iconic brand. Disney (NYSE: DIS) and Mickey Mouse have 37 million likes on Facebook which smashes the number of likes for almost every other company. Disney has captured the viewing eyes of generations and is set to capture the next generation with Pixar films like Brave (which already has 687,000 Facebook likes since it has been out in theatres a few weeks ago.)
Millions around the world love their Venti, half-sweet, no-whip mochas in the morning and they aren't opposed to expressing that love online. Starbucks (NASDAQ: SBUX) has over 31 million likes. That's almost the population of Canada. Starbucks has frequent promos on their wall and have had over 5 million people visit their home page.
McDonald’s Corporation (NYSE: MCD) is a popular restaurant among families worldwide with over 20 million Facebook fans. Mickey D's is truly living up to their brand; people are “lovin’ it.” They have seen a nice little return of 3.43% for the past year. McDonald’s Corporation saw a drop in September but even that didn’t slow them down for long. They saw a steady climb up until February of this year. CEO Jim Skinner retired in March and Don Thompson was elected as his successor, which seemed to be a drag on the stock value. With a lengthy history and a reputation that attracts around 70 million customers worldwide each day, it would take a tidal wave to bring them down. That’s quite a jump from the barbecue shack that began it all back in 1940!
So what do these companies have in common? They have excellent brands known and loved around the world. Plus each of the companies listed is super profitable and growing. Online campaigns on Facebook and other places are just solidifying the great brands. These 5 companies rank very high on the world's most valubable brands. Facebook likes allow customers to show all their friends that they support and love a certain company. This is free and powerful marketing. A great and valuable brand creates a massive moat which keeps market share and allows companies to raise prices. With a larger profit margin the company can be more profitable (look at the massive profits of companies above) and can withstand economic turmoil. Facebook likes are a powerful tool for solidifying an effective brand.
mthiessen has no positions in the stocks mentioned above. The Motley Fool owns shares of Walt Disney, Facebook, The Coca-Cola Company, McDonald's, and Starbucks. Motley Fool newsletter services recommend McDonald's, Starbucks, The Coca-Cola Company, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
