Tag Archives: Facebook

Cyber Monday Sales – Biggest E-Commerce day ever!

Cyber Monday is a marketing term for the Monday after the Thanksgiving holiday in the U.S. The term «Cyber Monday» was created by marketing companies to persuade people to shop online. It all started on November 28, 2005.

Cyber Monday online sales grew to a record $2,68 billion, compared to last year`s $2,29 billion. However, the average order value was $124, down slightly from last year`s $128.

Online sales on Monday climbed to a new record high, and the sales came in at $2,68 billion, and that is the best online spending day ever. It is also the first to surpass $2 billion in sales.

The weekend after Thanksgiving was popular for online shopping too. The sale was up 26% compared to the same time last year. It seems like this online shopping will continue to post new historical highs, and that reflects the ongoing strength of online shopping.

IBM says that the online sales jumped only 8,5% this year compared to last on Cyber Monday. This is less than last year when online sales jumped more than 20% by its measure.

Some belive it`s a change in shopping behavior and not a lack of consumer demand. It is a larger shift toward online buying as mobile phones spur the practice known as «showrooming». People tend to go to the store to see the products and buy them, or a similar product online. Price is a very important trigger here. Why spend some time to go to the shop if the price is lower online?

Cyber Monday is the busiest U.S online shopping day of the year, and that title is held since 2010. Walmart said it received the most online orders in its history on Cyber Monday. Mobile made up about 70% of the traffic to its website between Thanksgiving and Cyber Monday.

This is called Cyber Monday, so how is the online marketing? Is it working?

Social Media did very little to boost sales this year driving only 1,5% of sales. According to IBM, Facebook referrals drove an average of $109,94 per order compared to $100,24 for Pinterest. Facebook referrals converted online sales at more than twice the rate of Pinterest.

What really works better is e-mail marketing which was the primary driver of sales on both Black Friday and Cyber Monday beating the usual winner; search. Companies sent out 11% fewer e-mails this time, but the e-mails were more targeted.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Investors expectations for Facebook is high

Facebook will report earnings for its 3rd quarter of the year after the closing bell today. They smashed the earnings estimates in July and the stock jumped 6,5% higher. The stock continues to rally after that, but have surged 14% in the past two weeks.

facebook logo

Last quarter Facebook reported earnings of 42 cents per share, while Wall Street was forecasting 33 cents. Everyone was surprised, but what now? Over the past year Wall Street has sandbagged its estimates 5 quarter in a row, and Estimize is more bullish on Facebook`s bottom line now, expecting the social media king`s EPS to beat the Street by 5 cents per share. Wall Street has left its earnings consensus flat.

It`s expected to see the company to grow by 57% at the top and 80% at the bottom line. A 57% YoY revenue increase would be down slightly. Average over the past year is 64%. An 80% EPS gain YoY is also below the average of 124%. Their growth is expected to break. $3 billion a quarter in sales makes it unprecedented to grow fast.

In the company`s previous earnings release Facebook reported 1,32 billion monthly users, and 1,07 billion monthly users on mobile. A huge number, but Zuckerberg have a plan to keep the profit piling g up.

They will increase the value of advertisements by improving data tracking, and with help from Atlas, Facebook will try to compete with Google, which is the master of data tracking and serving targeted advertisements which is gold for marketers worldwide.

Mark Zuckerberg want to offer best in the class mobile experience. At the beginning he was worried that the app was too difficult to manage. He was worried that the app was clunky on mobile, and trying to do too many things at once. So far it looks like his plan is paying off as Facebook is making a killing on mobile advertisements.

They will also try to expand the user base by connecting more people to the internet across the globe. When Zuckerberg outlined his goal to connect the world to the internet last summer, only 2,7 billion (1/3 population of the planet) had access to the internet. So far, they have done a great job to sign up new members as they have over 1 billion monthly users.

It`s easy to see why investors are so bullish on Facebook. The only point of concern might be that Facebook has performed so well over the past year that expectations have gotten ahead of themselves.

Facebook is up 47,4% YTD. Will they beat the Street this time?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Who is Jan Koum?

 

Jan Koum is born in Kiev, Ukraine on February 24, 1976. He is an American internet entrepreneur and computer engineer. He founded WhatsApp together with Brian Acton and are the 6th richest billionaires in the world under the age of 40.

whatsapp logo

He earned most of the money while they sold WhatsApp to Mark Zuckerberg`s Facbook in February this year for $19 billion. Koum is Jewish and grew up in Fastiv, outside Kiev in Ukraine. He moved to Mountain View, California in 1992.

 

Koum moved with his mother and grandmother to California where a social support program helped them to get a small two bedroom apartment at the age of 16. His father intended to join the family later, but finally remained in Ukraine.

 

He started to work as a cleaner at a grocery, while his mother worked as a babysitter, but at the age of 18 he became interested in programming. He enrolled at San Jose State University and simultaneously worked at Ernst & Young as a security tester

 

Jan Koum was part of a group of hackers called w00w00, where he met the future founders of Napster Shawn Fanning and Jordan Ritter. Jan Koum and Brian Acton worked at Yahoo in nine years. In September 2007 the both left Yahoo and took a year off.

 

Both applied and failed, to work at Facebook. In January 2009, Koum bought an iPhone and saw opportunities in the new app industry. He visited his friend Alex Fishman and they talked for hours about Koum`s idea for an app.

 

A week later Koum started WhatsApp on his birthday, February 24, 2009. Now, you all know that the WhatsApp baby is worth $19 billion. On February 19, 2014, Facebook Inc announced it is acquiring WhatsApp.

 

Facebook paid $4 billion in cash, $12 billion in Facebook shares and $3 billion in restricted stock units to be granted to WhatsApp founders and employees that will vest over four years. Jan Koum is the CEO in WhatsApp.

 

As of April 22, 2014, WhatsApp had over 500 million monthly active users (MAU), 700 million photos and 100 million videos are shared each day, and the messaging system handles more than 10 billion messages each day.

 

As of May 2014, WhatsApp has crossed 50 million MAU`s in India, which is also its largest country by the numbers of MAU`s. WhatsApp Messenger is a proprietary, cross-platform instant messaging subscription service for smartphones that uses the internet for communication.

 

Facebook paid $19 billion, which is $42 per user. A week before the WhatsApp deal, Japan`s Rakuten bought Viber for $900 million. They claims to have 280 million users, which is $3,21 per user.

 

Some investors say Facebook paid too much for WhatsApp, while others say WhatsApp could be worth $100 billion. WhatsApp`s users are worth $42, while Viber`s users are worth $9, and Line`s are worth $73. WeChat`s users are worth $231 per MAU.

 

If you only sell ads, I think that an international user is worth less than a Western user. I really look forward to see what the right valuation for these apps are in the future. Anyway; A great story!

 

Reports today:

 

08:30 a.m EST Core CPI m/m

08:30 a.m EST Unemployment Claims

08:30 a.m EST CPI m/m

08:30 a.m EST Empire State Manufacturing Index

09:00 a.m EST TIC Long-Term Purchases

09:15 a.m EST Capacity Utilization Rate

09:15 a.m EST Industrial Production m/m

10:00 a.m EST Philly Fed Manufacturing Index

10:00 a.m EST Mortgage Delinquencies

10:00 a.m EST NAHB Housing Market Index

10:30 a.m EST Natural Gas Storage

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Stocks that beats the estimates

Facebook (FB) beats the estimates by $0,10. Q1 EPS came in at $0,34. Revenue of $2,5B, beats the estimates by $160M. The stock slid -2,65% yesterday, but will open up about 5% later on today. Facebook stock trades at about 100 times earnings.

They still succeed on mobile advertising. 0% of their revenue came from mobile in Q1 of 2012. Now, mobile ad revenue accounts for 59% of Facebook`s total ad revenue. That is a big surprise for many investors.

facebook logo

Facebook is growing fast and the trend seems to continue. They have a growing base of monthly and daily active users. They have higher quality ad products, new ad products and the marketers spend more on their ads. Ad revenue growth in Q1, 2014 is 82%.

Facebook have so far been the king of social media but its crown has started to slip. The biggest thing for Facebook right now is mobile. The big question for me is what the acquisition of the instant messaging service, WhatsApp, will give them in return? It remains to be seen.

Apple

Apple Inc (AAPL) slid yesterday, trading down -1,31% to $524,75, but the stock will open up about 7% later on today. The stock is down -6,5% so far in 2014. Mr Tim Cook crushed expectations in the quarter.

Apple Inc earned $11,62 compared to consensus of $10,21. They generated $45,65 billion in sales. It is not a surprise to see the stock pop up today! Iphone sales are very strong at 43,7 million units. It was expected to see a sale of about 38,5 million phones.

We can confirm that the relationship with China mobile (CHL) is a success. Mac sales were also solid at 4,1 million, but iPad is disappointing with a sale of 16,35 million compared to the expectations of 19,8 million.

I think that the iPhone launch in Chine will power growth in coming quarters. All this thanks to the big and fat company in China called China Mobile, which have over 700 million active smart phone users. China dominates the digital world and are a hotbed of crazy innovation!

Apple Inc added $30 billion to its buyback, upped its divided 8% and announced a 7 for 1 split in the stock. That is very unusual nowadays. At 9x earnings, Apple shares are attractive at current levels.

Apple has bought 24 different companies in the last 18 months, but they will wait to lauch any new products, and will likely have to wait until the second half of the year for product launches. These results make it clear Apple is in a position of strength and sky is not falling.

This is good news for investors concerned about the slow growth in Apple. Some investors are worried that Apple has lost its innovative edge under CEO Tim Cook. What I am looking for is a mobile payment solution. Come on Apple!

I know you have 800 million iTunes accounts. Will credit cards linked to them be leveraged for a payment service in the near future? Think different and be innovative. This is the way to make more growth and happy investors.

Microsoft (MSFT) is also down. Slid -0,75% yesterday. It`s understandable to see Facebook grow like they do, because they are young and fresh. But what about Microsoft and Apple? They are big and fat and slow.

They have been strong rivals for many years and they both have a turbulent history. Take a look at their growth. The seven last quarters, the growth has stopped at the most fundamental level. How are they going to grow in the future? Are we in a tech bubble?

Reports today:
08:30 a.m EST Core Durable Goods Orders m/m
08:30 a.m EST Unemployment Claims
08:30 a.m EST Durable Goods Orders m/m

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Go Daddy IPO

What a jump for tech stocks yesterday! Facebook up +7,25%. LinkedIn +4,19%. Yelp +5,95%. Yahoo +3,07%. Even Twitter was up yesterday; +1,70%. That`s just a few of them. Many investors saw a huge opportunity and jumped into the market yesterday.

The market was very quiet yesterday, but that was before the release of the Fed Meeting Minutes. Right after the release, we saw a nice move in the markets. This time investors was bullish and most of the tech stocks skyrocketed.

With the rally yesterday, we can see a new bullish trend in the chart, but it is a little bit too early to say that 100% right now. It’s just early in the stage of the new bullish trend. Equities rallied, but Treasuries declined after the minutes eased concern about the timing of future interest-rate increases.

They probably might have to keep the rates at levels below normal for longer because of tighter credit and a slow growth. In addition there will be higher savings. Fed have always said that they will keep the rate low as long as the unemployment rate exceeds 6,5%.

Fed also said that the benchmark interest rate would rise faster than previously forecast. Only the new data that comes in will tell them what to consider when to increase borrowing costs. Bad data coming in later will destroy their plans and vica verse.

Go Daddy

The leading domain name registrar Go Daddy has hired JPMorgan and Morgan Stanley to handle an IPO that could occur later in 2014. They provide individuals and businesses with internet services, such as domain name registration and website hosting.

They also have software for functions that include e-mail, e-commerce, podcasting and website creation. Go Daddy boosts some 57 million domain names under management. They targets niche markets the likes of priate domains and reseller programs through affiliates Domains By Proxy and Wild West Domains.

Founder Bob Parsons remains its majority shareholder, while both KKR and Silver Lake have been partners in Go Daddy since 2011. Go Daddy was acquired by KKR, Silver Lake, and VC firm TCV for $2,25B.

Their rival Wix went public last year and soared +7,82% yesterday. Verisign jumped only +1,2%. Wix has a 52 week low of $16,19 and a 52 week high of $32,69. The stock`s 50-day moving average is $26,28. 200-day MA is $25,12. Market cap is $831,7 million.

I personally use Go Daddy and I like their competitive prices and their service. I will look for the IPO and I will wait for Alibaba to come to the exchange later on this year too. That`s gonna be two new stocks for the tech sector in the future.

Reports today:

08:30 a.m EST Unemployment Claims
08:30 a.m EST Import prices m/m
08:30 a.m EST G20 Meetings
08:30 a.m EST G7 Meetings
02:00 p.m EST Federal Budget Balance (Previous: -193,5B Forecast: -76,5B)

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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