Facebook is the KING!
The king of social media is without any doubt Facebook. The stock is up over 300% since 2013. Mobile ads helped Facebook`s revenue and stock price to skyrocket and their growth prospects comes from VR, Messenger and payment. Financial services are also coming.
Facebook has 1,5 Billion monthly active users, which is more than the world`s most populous country; China. Awesome!
Of course I am impressed. Facebook has been very aggressive and proactive in their development of advertisement. This is not what you can say about Twitter. Facebook has differentiated their advertisement offerings within the News feed.
This is what Twitter needs. A product like Facebook’s News feed, and 1,5 billion active users, and about 1 Billion DAU`s. They have differentiated the News feed, and these differentiated News feed can help marketers with targeted ads. What marketer in this world would say no to that? Their online advertising growth is accelerating.
Facebook continue to offer services focused on people, marketers and developers and their MAU`s speaks for itself. People are engaged in their activities in all their various platforms which is Facebook, Instagram, messenger and Whatsapp.
Why are people so active on these platforms? People are active to share their opinions, ideas, photos and videos and to engage in other activities. They can also connect, discover and communicate with each other on mobile devices and personal computers.
Another innovation is Facebook’s e-commerce functionality where you can simply buy products direct from your own Facebook site. This comes on top of Facebook’s Instant Articles publishing platform. All this will increase their advertising revenue, which is expected to have increased 50% YoY, ex-FX.
In April 2014, Facebook acquired ProtoGeo Oy, which is a Helsinki-based developer of software for smartphones. In July 2014, they acquired Oculus VR Inc, which is an Irvine-based developer of virtual mobile gaming application software, and as you may know; they are the owner of WhatsApp.
What we see in these markets is only the beginning. An early stage. They have many opportunities as long as they have a massive user base. F or example, the online dating market generated $2,2 Billion in revenue in the U.S in 2014. Facebook can easily take a huge stake in this market if they want. That comes on top of travel, utilities, messenger and e-commerce to name a few.
Facebook will report earnings on Wednesday. Facebook`s earnigs per share forecast for the fiscal Quarter ending September 2015 is $0,35, which is up from last years $0,32. Revenue is expected to jump +37% YoY, to $4,176 million, which is a growth of over 40% since last year.
Facebook after the bell on Wednesday 4 November 2015.