Tag Archives: Facebook

Facebook are dealing with the music industry

Facebook has a lot of DAU`s and more and more people spend time watching videos. Facebook is a young company and so far they already have billions of video views. But Mark Zuckerberg want to prosper from this industry.

There is no doubt that YouTube is the most popular video-sharing company in the world. Many artist has started their carriere at YouTube and one of them is Justin Bieber. In 2016, YouTube gave the music industry $1 billion in ad revenue, and Facebook wants to join.

 

ftv

 

Streaming was a game changer on how media is bought. It changed how it`s consumed. It also changed who profits from it, and of course how much they all made in this industry. For the first time in 20 years, the music industry saw significant revenue growth in 2015.

The revenue from streaming is $2,9 billion world-wide, and revenue from video on demand rose almost 9% in 2015, and music clips can move about $50 – $70 billion from TV industry.

Facebook has nearly 2 billion users and still a growing advertising business, and a deal with the music industry can be a win-win agreement, which means billions in revenue from new sales for the music industry.

The interest in videos is growing and Facebook want to prosper from that, and that’s why they are so interested in music rights. Facebook moved billions in ad revenue from print and now many online firms have targeted TV.

Facebook are not alone on the market and they need to share some of the market with Twitter and Snapchat, but the biggest of them all is YouTube which is Faecbooks main rival. Googles YouTube channel said music is one of the most popular types of videos on their on-demand service.

TV networks and News organizations are experimenting with Facebook, just like they did with YouTube and this will continue. This is interesting because Facebook is big.

Thanks to streaming, the music industry is growing again and that is because of the paid streaming services from Apple and Spotify.

Facebook will probaby sign a deal with the music industry before the summer this year.

 

trump100_b

 

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.

Advertisements

Leave a comment

Filed under Stocks

Will Snapchat be the next Facebook?

Snap is going public. No, I`m not talking about the pop stars with the super hit “I got the power”. This is something different. A different power. But how powerful are Snap Inc actually? Do you really think that Snapchat will be the next Facebook?

Let`s take a closer look at some real facts. I have made a picture of some of the most loved firms in the social media universe, and this time I will compare Snap with Facebook and Twitter. As you can see from the chart below, Snap look more like Twitter than Facebook. Take a look below.

 

 

compared

 

 

As you can see from the chart above, Snaps cost follow Snaps revenue. Its positive to see that their revenue grew from $59 million to $405 million. Thats a whopping 590% over the same time. But the drawback is their high cost structure. Their net operating profit after-tax fell from -$344 million in 2015 to -$498 million in 2016.

You do already here understand that Snap is not the same as Facebooks business model. Revenue goes up while their profit goes down. Snaps valuation is about $20-25 billion, with a revenue of $405 million, and an operating loss of -$520 million.

Facebooks valuation when they went public was much higher with $3,7 billion in revenue, and an operation income of $1,75 billion. Facebooks valuation at that time was $90-105 billion, but as you may know, the stock traded down after the IPO.

You also may know the story of Twitter. Right up, and right down again. Will Snap follow Twitter? Take a look at the numbers. They are very similar. Revenue was $448 million, with an operating loss of -$93 million.

Twitters valuation at that time was $18-25 billion, but people said it was too much. Many investors said the right valuation was half of that; only $10 billion. Snaps trailing sales valuation was 62x, which is about the same as Twitter`s 56x.

Twitter had 100 million DAUs when they went public, while Snap has about 158 million. What is that compared to Facebooks 483? It will be hard to be a new Facebook.

Snap are going public on Thursday.

 

trump100_b

 

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.

Leave a comment

Filed under IPO, Stocks

The best social network advertisers love the most

How in the world are you gonna survive on this planet without marketing? The answer is very simple; you wont. How can you expect your customers to buy your product if they don`t know about you?

You need to brand your business and let people know about you, and the more they know about you, the more they will talk about you and remember you. Word of mouth is cheap and an extremely powerful form of advertisement, but is that enough?

Social media is the real big thing at the moment. Your competitors are using it. Your customers are using it, and so need you. This form of media advertising is extremely powerful, and by one simple click, you give them all something positive to talk about; Your products.

 

socialnetworks

 

You need to be were your customers are; on social media. You can`t run from it, so you may as well embrace it. The only way to connect with them is to make your online presence known. So, what platform do marketers spend time and money on, and who are the best? The answer is simple; Facebook!

Social media is a must. It makes you communicate with your customers and that will significantly increase your brand visibility. Traditional marketing in paper media could increase your traffic, but social media will bring people together, and your friends and followers will talk about you. That in turn will increase your revenue.

As you can see from the chart above, Facebook is by far the most popular network of choice. All marketers are using it, but Twitter can be replaced as the second most popular social media platform.

Instragram is third right now, but that seems to change very soon. A fresh new report claims that Instagram is quickly gaining popularity among marketers and could soon take Twitter`s place as the second most important social advertising channel.

Mark Zuckerberg and Facebook revealed in its recent earnings report that more than 200,000 businesses around the world advertise on Instagram each and every month. Instagram and its network is available in more than 30 countries and their popularity is growing.

People come to Instagram for visual inspiration, and advertising on Instagram has the power to touch, inspire and move people. Instagram ads have proven to drive strong branding results. 97% of measured campaigns on Instagram have generated significant lifts in ad recall.

Instagram is expected to grow a lot further in the future.

 

skjold5

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.

Leave a comment

Filed under Stocks

GoPro must rethink its VR strategy

GoPro was once a Wall Street favorite. Right after the IPO, the stock peaked at about $87 in October 2014. That was then. The stock has been falling since then and are now trading at about $12.

The stock has plummeted on weaker demand and an economic slowdown in China. Many analysts have lowered GoPro`s expectations for 2016 and 2017 EPS and revenue, as well as average selling price expectations.

 

gopro

 

The competition in the market put a pressure on GoPro as both Sony and Xiaomi are launching similar products. The action camera space has become increasingly crowded and commoditized. The company`s target market has become saturated with cheaper and more innovative products, severely hurting its bottom line.

They will also meet challenges from Facebook on their VR ambitions. Facebook encourage everyone on the platform to make their own high-end 360-degree cameras, which means GoPro need to build a new strategy for their VR ambitions.

Investor need to know that GoPro is innovative enough to create a new VR capture device that can beat their competitors like Facebook.

GoPro President, Bates said last quarter that virtual reality is a «key initiative,» and that it had «several products in development that will position GoPro as a leader in VR.»

The competition between Surround 360 makers are tightening and GoPro can lose the high-end VR camera market to other new players and one of the cheaper rivals are Ricoh.

The $400 HEO4 camera has consistently missed sales forecasts, leading to steep price cuts to spur demand. Thats not profitable for the company in the long run, so investors are now holding out hope that GoPros Karma Drone, set to launch later this quarter, is the product that can resuscitate the company.

GoPro bulls belive the launch of Karma drone and a new HERO5 cameras might get the firm back on track, but the company doesnt have a new release date for either device. We only know its gonna be later this quarter.

This puts growth expectations at -302% for EPS and -48% for sales.

Esimize consensus calls for EPS of $-0,55, which is three cents above Wall Street. Revenue expectations of $171,6M are just slightly higher than the Street`s $169,6M. Numbers on the bottom-line have been ratcheted down 899% in just the last 3 months, with top-line numbers reduced 49%.

Watch out for the report on May 5, 2016, after the close.

GoPro aquired smaller companies like Kolor, which produces 360-degree videos, and video editing startups Stupeflix and Vemory, and remain to see if that can help the company to diversify their business.

 

skjold5

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.

Leave a comment

Filed under Stocks

Facebook acquired Masquerade to compete with Snapchat`s “Lenses”

Facebook acquired one of the most popular apps in the App Store at the moment; Masquerade. Mark Zuckerberg probably learned a lesson when Facebook acquired WhatsApp, so Facebook will not reveal how much they paid for Masquerade.

According to App Annie, Masquerade has an average rating of 5 stars and remain at the top of App Store`s charts. Masquerade is only a couple of months old and has become a huge hit in a short period of time.

 

fb-msqrd

 

Their products deliver the level of performance, robustness and quality not seen in any other products available on the market. Real-time video communication is quickly growing in popularity, and Masquerade strives to make live video interaction even more attractive for both business customers and consumers by offering advanced software solutions capable of altering and/or enhancing person`s appearance in live video.

A proprietary self-learning face tracking algorithm as well as a framework for creating special effects, which have been in development since 2010, are Masquerade`s crown jewels. They have accumulated enormous expertise in solving the problem of face detection and tracking.

Facebooks aquisition will compete with Snapchats app called «lenses» wich was launched last year. Snapchat acquired Looksery and introduced animated overlays for selfies with great success.

The King of social media is also planning to make the new app MSQRD a standalone free app in addition to an integrated app on Facebook`s platform. The effects are joining other creative tools Facebook has added to its app already, like stickers, fingers doodles, and photo filters.

With the selfie-app MSQRD, you can do face-swaps and record silly video animations of yourself and share them across social video.

Drop your good old video selfies and make it more fun and interesting with MSQRD.

 

sbnews

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.

Leave a comment

Filed under Stocks