Facebook blew the barn doors of its
latest quarterly results, sending the stock price surging in
after-hours trading Wednesday after the numbers were released.
The company posted quarterly earnings
of $425-million. Revenue was up $1.8-billion. Profit margins are up
to 37 per cent. And most of all that growth was from mobile.
Plus, there are more than 800 million
active users on the network.
Traders responded well, initially, as
FB soared more than 14 per cent in after-hours trading.
But then, they digested a little more
of the social network's quarterly report, and were less impressed.
The stock price dipped in after-hours trading by 3 per cent.
Why? A small caveat that Facebook now
faces – fewer younger users are active on Facebook.
One analyst told the Globe that they
may be on Twitter, and these young teens could be seeing Facebook as
the ghost of MySpace (shudder).
Instead, these teens are spending their
time on Instagram and Snapchat.
But what many people don't realize –
even some analysts seem to be forgetting this – but Facebook owns
Oh, and Instgram hasn't even been
monetized yet, despite Facebook's purchase of the photo-heavy social
network for $1 billion.
So while teens are turning to
Instragram feeds over Facebook feeds, there are no ads in Instagram
to make Zuckerberg & Co. any money – yet.
It's no secret that advertising is
coming to Instagram next year, and Instagram is as mobile-dependent
as water is critical to the survival of fish.
With this in mind, it seems as though
mobile advertising revenue has the potential to pick up even more
steam for Facebook.
- Maurice Cacho, MSN Tech & Gadgets