Tag Archives: Instagram

Facebook is the KING of social media networks

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!

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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.

 

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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. UA-63539824-1.

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Facebook up 12,4%

So far this year, Facebook is down -2,0%. Yesterday, Mark Zuckerberg launched the new report FQ4earnings, and after that, the stock jumped 12,4% in after hours trading. That is pretty good for a stock that everybody predict will die like a virus and lose about 80% of its users by 2017.

Researchers at University College London stated that Facebook is «dead and buried». The teenagers has escaped and Facebook is not cool anymore. The fact is that Facebook has grown its EPS and revenue last eight quarters, and they have 847 million active users.

Facebooks fourth-quarter revenue topped analysts estimates. Revenue rose 63% to $2,59B. Mobile promotions generated $1,25B and accounted for 53% of advertising revenue. Previous quarter was $49%. Mobile is the key for Facebook, so I think it`s going to be a great battle between Facebook and their competitor Twitter in the future.

Net income rose to $523million, or 20 cents a share. That`s up 17 cents a share from a year ago. As an educated marketer, I will follow both Facebook and Twitter for their battle on the digital-ad market. Twitter will release their first earnings as a public company feb 5. We look forward to that.

It is expected that Facebooks market share will rise to 9% by 2015, while Twitter will grab a 2% share. Facebooks average price of ads is up 92% from a year ago. It will be more quality ads instead of quantity ads. Next week they will celebrate 10 year. Happy birthday.

If the teens have gone from Facebook, where are they? They are on Instagram, and the number of people on that platform is truly remarkable, but right now they don`t have any data for this teen engagement. Facebook is the owner of Instagram.

Last year Facebook offered $3 billion to acquire Snapchat Inc. This platform is also very popular to teenagers. It`s understandable that the younger teens aren`t using Facebook`s website anymore. They have so much other alternatives.

Facebook is not only Facebook. It`s Instagram too. Instagram is growing and has doubled its user base. This mobile photo-sharing service company have 180M MAUs, and that`s pretty good compared to last years 90M MAUs.

Mark Zuckerberg says Facebook is planning to launch several new apps in 2014. They will develop more standalone mobile apps with great new experiences that separates from what you think of as Facebook today.

Facebook Messenger had a 70% growth in the last 90 days. North America still accounted for 47% of the revenue in Q4. Last month, they sold $3,85 billion of shares in a secondary offering. That is Facebook`s first share sale since going public. The stock more than doubled last year.

Holidays starts tomorrow to mark a change in the Chinese zodiac calendar from the snake to the year of the horse. On a day like this, many Chinese people buy gold as a gift and the demand is rising. As you know, the Chinese economy is growing fast, and so are the demand for jewelry, bars and coins. It rose 30% last year, and that is the highest of any nation, World Gold Council data show. Net imports of bullion from Hong Kong more than doubled last year.

Reports today: Advance GDP q/q at 8:30am, Unemployment claims at 8:30 and Pending home sales at 10:00am.

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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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M&A (merger and acquisition)

As I wrote about earlier, you must look for small cap stocks in the Russell 2000 now. It is risky, but high risk means high gain, and you have to spend money you can afford to lose. So why small cap stocks?

You see, America is for sale and that is for the highest bidder. What I am talking about is really good companies out there. The companies that no one is talking about. The cheap one. The innovative one.

There is a lot of money out there waiting for good investments. Many of the great companies are searching for the right small cap stocks. Why? They simply want to thrive by purchasing growth.

Take a look at Google. For example, they expanded and bought Youtube.com. Everyone is afraid of Google. They are a great example of a model for what a media company needs to be in order to be competitive in the future.

Cisco was smart enough to buy companies with great talents instead of developing them themselves. Cisco have done this over 140 times since 1993. They are infusing new ideas and new ways of thinking by doing it like this. It makes them strong and competitive. Google seems to do exactly the same thing and that makes them stay ahead of a rapidly changing competitive landscape on internet.

The really biggest day in e-commerce in history is Cyber Monday. $10 billion was spent from about 70 million online shoppers. That`s an increase of 18%. 30% of the purchases came from a mobile device. 80% of those came from an Iphone or iPad. unbelievable!

And here is the catch: Social sites generated only around 1% of the e-commerce sales on that day. An increase of only 2%. So, E-commerce is the real big thing. It`s business. 17% of the sales came from Email. That`s pretty nice.

Facebook, Twitter, Instagram and Pinterest are popular sites and people still think that social media is a marketing must. The numbers are falling and the money is not in here. Social media is better for branding, networking and community building, but direct sales is better other ways than social media. Will we see any M&A in this sector in 2014? Are those big ones looking for small caps?

This is a tremendous investment opportunity and you as an aggressive investor need to play on it. But how? I expect next year to be a takeover boom! You have probably seen it before and know that nothing jolts a stock higher than an unsolicited takeover offer. The stock prices skyrocket on rumors like that.

Who say no to a single-day return of 50% or more? I have many new and exciting companies on the radar, but I can`t tell you what stocks it is. It is a lot of research behind the work of finding the best stocks, so this is what I get paid for.

But I can tell what sectors you should look for. It is technology and healthcare. I expect a lot of action in those sectors next year. I really look forward to 2014. It`s gonna be a funny year. So, I am still bullish!

News today: PPI m/m at 8.30am.

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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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