Tag Archives: Mark Zuckerberg

Instagram`s audience is growing much faster than Facebook`s and Instagram can be Facebook`s best growth engine

Mark Zuckerberg and Facebook started its business 13 years ago on February 4, 2004. Many things have happened since then, and Facebook are now among the biggest corporations with its 2016 Revenue of US$ 27,638 Billion. The success continues.

The social media giant are growing like never before. Ad revenue grew by 51% YoY in Q1 2017. It jumped from $5,2 Billion to $8,85 Billion. Total revenue climbed 49% and earnings went from $0,60 to $1,04.

 

 

It is a big surprise for many to see that Facebook is still adding DAUs and MAUs (active users). Monthly active users have jumped to over 2 billion and their revenue will follow. Many companies are trying to take Facebook`s throne, but the giant are very strong and knocks off all challengers.

Snapchat is the latest challenger, but Facebooks Instagram seems to be strong in this market and will also contribute to Facebooks revenue growth. Instagram has over 700 million MAUs and 400 million DAUs.

Instagram is integrated in the social media business model and they have been selling ads for four years now. Instagrams audience is growing much faster than Facebooks audience and Instagram can be Facebook`s best growth engine.

Instagram is not the only growth engine of Facebook. They also have Messenger, WhatsApp and Oculus VR, and their next step will be to compete with YouTube.

Investors love the social media giant. In January this year, Facebook`s shares were trading at $115 per share and on Monday their shares were trading at $166 per share. The giant have jumped over 40% so far in 2017. Compare that to the rise in the benchmark S&P 500 index during the same period and see for yourself.

Facebook Inc is expected to report earnings on Wednesday 26 after market close. The report will fe for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $1,13 which is a big jump from $0,76 in the same quarter last year.

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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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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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