Mark Zuckerberg’s startup days are well behind him, but that doesn’t mean he is traveling the world, living the high life, no longer concerned with his mega-site, Facebook. Wednesday, January 27th, saw Facebook post impressive earnings, sending Wall Street into a shock and awe campaign that drove stock prices higher after trading hours.
Not only did Facebook beat expectations, but during the last quarter of 2015, the company brought in $5.8 billion. That is an impressive growth of 52 %, however, if that were not enough, Facebook revealed that they cleared a profit of $1.6 billion – which is a whopping increase of 123%! The biggest increase comes from Mobile ad revenue, which now makes up for 80% of total advertising revenue. This is up considerably from the 69% the company earned in 2014.
Where is all this growth, and money, coming from? You – the user. Facebook now has 1.5 billion users each and every month. The company is making more money off each of these users at the same time. Facebook is earning almost 50% more off of each user in the U.S. and Canada than it did in 2014. Globally speaking, Facebook is making more than 33% from each user. This is also an increase from the 24% Facebook posted just last quarter.
New features that Facebook introduced last year, including GIF’s, live video feed, collages, the capability to hide from your ex, improved notifications, as well as a more powerful search tool, have obviously paid off. These new tools and features not only attract new users, but they keep current users using the site for longer periods of time. This allows Facebook to find out more about individual users and therefore, target their advertising more effectively.
With such immense growth in 2015, it is hard to imagine how Zuckerberg can match or increase these numbers in 2016 but he doesn’t appear to be worried. Although this young CEO divulged very little about his plans for Facebook this year, he did seem pleased with the pre-order sales of the virtual reality display Oculus Rift. Zuckerberg feels that this device is a step towards the future, but is it a step in the right direction for the world’s largest social media site?
Unstable global economic conditions and world currency rate fluctuations are both making for a wild ride on Wall Street so far. Only time will tell if Facebook’s expected investments in new features and other products, such as Oculus, will pay off handsomely or if users will balk at being Zuckerberg’s cash cows.
Source: https://www.hartfordbusiness.com/article/20160127/NEWS02/301279891
xMark Zuckerberg’s startup days are well behind him, but that doesn’t mean he is traveling the world, living the high life, no longer concerned with his mega-site, Facebook. Wednesday, January 27th, saw Facebook post impressive earnings, sending Wall Street into a shock and awe campaign that drove stock prices higher after trading hours.
Not only did Facebook beat expectations, but during the last quarter of 2015, the company brought in $5.8 billion. That is an impressive growth of 52 %, however, if that were not enough, Facebook revealed that they cleared a profit of $1.6 billion – which is a whopping increase of 123%! The biggest increase comes from Mobile ad revenue, which now makes up for 80% of total advertising revenue. This is up considerably from the 69% the company earned in 2014.
Where is all this growth, and money, coming from? You – the user. Facebook now has 1.5 billion users each and every month. The company is making more money off each of these users at the same time. Facebook is earning almost 50% more off of each user in the U.S. and Canada than it did in 2014. Globally speaking, Facebook is making more than 33% from each user. This is also an increase from the 24% Facebook posted just last quarter.
History
New features that Facebook introduced last year, including GIF’s, live video feed, collages, the capability to hide from your ex, improved notifications, as well as a more powerful search tool, have obviously paid off. These new tools and features not only attract new users, but they keep current users using the site for longer periods of time. This allows Facebook to find out more about individual users and therefore, target their advertising more effectively.
With such immense growth in 2015, it is hard to imagine how Zuckerberg can match or increase these numbers in 2016 but he doesn’t appear to be worried. Although this young CEO divulged very little about his plans for Facebook this year, he did seem pleased with the pre-order sales of the virtual reality display Oculus Rift. Zuckerberg feels that this device is a step towards the future, but is it a step in the right direction for the world’s largest social media site?
Unstable global economic conditions and world currency rate fluctuations are both making for a wild ride on Wall Street so far. Only time will tell if Facebook’s expected investments in new features and other products, such as Oculus, will pay off handsomely or if users will balk at being Zuckerberg’s cash cows.
Source: https://www.hartfordbusiness.com/article/20160127/NEWS02/301279891
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