Facebook
Inc (NASDAQ:FB), the No.1 social media company, on
Thursday announced achieving a landmark of 1 billion users last month.
A lot of hurdles were faced by Facebook since its
initial public offering. There were sharp chances of growth in revenue to
slowdown and as how do Facebook make money from users accessing its site on
mobile devices, by the investors and analyst.
Facebook based in Menlo Park, California, achieved
the 1 billion milestones on September 14 at 12:45 p.m. Pacific time an up by 45
million users since June. It had 955 million active monthly users than.
According to a Factsheet, the company reported of
600 million mobile users.
On being asked by NBC’s “Today” co-anchor Matt
Lauer, about the company using 1 billion users and making money by
"killing it,", the Chief Executive Mark Zuckerberg replied "I
think it depends on your definition of 'killing it.' I mean we are making
billions of dollars."
Has FB Found The Bottom and Ready To
Move Up? Find Out Here
Facebook posted an increase by 32 percent to $1.18
billion for the second quarter as per the earnings report. Roughly 84 percent
of the total revenue in the second quarter was accounted by advertisement.
"There's 5 billion people in the world who have
phones, so we should be able to serve many more people and grow the user base
there," said the 28 year old CEO.
In pursuing its growth through mobile devices, the
CEO said that the company's new mobile ads were delivering better results for
advertisers than its traditional ads on personal computers.
To increase its growth, Facebook has taken
initiatives including a new advertising platform and measurement methods to
show companies they are getting their money's worth with Facebook ads.
No surprises for the analyst were there because as
expected Facebook reached its goal. Wall Street had expected Facebook to hit 1
billion in the third quarter, said Dan Ernst, Hudson Square analyst. But the
key according to the analyst was how to make money from its users.
The top five user companies for Facebook are Brazil,
India, Indonesia, Mexico and the United States.
Facebook has been taking interest in offering new
products, to generate revenue, as per the fatal believes of investors and
analyst to make money. In recent
quarters there was a sharp decline in revenue growth rate.
One of such initiative was launching of new website
“Gifts” for its user, where they can buy, send gifts to friends.
Facebook faced a downfall of more than 40 percent
since its opening at $38.
On Thursday, Facebook shares rose 0.6 percent to
$21.97.
Meanwhile, The Los Gatos, California-based company Netflix, Inc.(NASDAQ:NFLX) stock extended
its uptrend and rose another 6.50% in Thursday’s session after soaring 12% in
the previous trading session.
The rise was the best in almost three months, which
was followed because of the review of a Citigroup Inc. analyst stating the
improvement of video- subscription service to its customers.
Engaged with customer satisfaction issues, since
2011, with increase in prices for users who both stream videos and get DVDs by
mail and an attempt that year to separate those offerings was Netflix.
Compared to a 45 percent satisfaction with customers
in first and second quarter, a Citigroup survey last month found satisfactory
48 percent customers who are “very or extremely satisfied.”
A Citigroup analyst Mark Mahaney, wrote “Netflix’s
competitive position continues to rise.” “The percentage of respondents listing
Netflix as a top destination has increased” from 25 percent in the second
quarter to 35 percent now.
Has NFLX Found The
Bottom and Ready To Move Higher? Find out Here
Mahaney wrote: “The perceived streaming content
selection appears to have improved,” in the past 12 months about thirty seven
percent believe it has got bettered, while 16 percent says it has worsen.
He rated the shares buy/high risk.
Citigroup survey included about 3,800 U.S. Internet
users, including more than 1,200 current and 700 past Netflix subscribers.
Netflix
shares are under pressure of competition which might hamper its growth.
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