Facebook Inc (NASDAQ:FB) released its earnings report on Wednesday, 28th January, 2015, and much to everyone’s surprise, it surpassed expectations as projected by Wall Street. Julia Boorstin covered it for CNBC and reported that while there was an increase in just about every aspect pertaining to this social networking site, it was mobile advertising which took the cake. Having jumped from 53% in 2013 to 69% in 2014, it is proving to be a lucrative segment for Facebook.
There has been an increase in the number of active users too although the segment comprising of teen users continues to witness a slow erosion. In light of this declaration, share value of Facebook Inc (NASDAQ:FB) showed fluctuation and eventually closed at $75.17 having lowered by 1.40%. The fact that Facebook CEO Mark Zuckerberg expressed his opinion about some of the company’s branches being too young for monetization is likely to have triggered a downward shift.
Craig Elimeliah, vice-president and Director at RAPP summed up the situation succinctly in his following comment –
“Growth for Facebook is not really in numbers, it’s in user engagement, and there are really no people left. They cant fundamentally change the core Facebook platform because its so big. They are going to have to look for ways on how to create deeper engagements from an ad perspective and not rely only on display.”
With just four days prior to the Super Bowl kick-off in Arizona, Facebook Inc (NASDAQ:FB) has announced that it intends to use its social networking platform to sell video ads during the tournament. Keywords related to the game will act as triggers for these ads and while it implies an expansion of user base for Facebook, it also means venturing into a territory wherein Twitter Inc (TWTR) has always held sway.
All of this proves that Facebook Inc (NASDAQ:FB) is faring better than its counterparts in this sector and hence emerges as a worthy investment option for 2015.
This article has been written by Vinita Basu.