The market shall close on Tuesday, bringing with it, the results of the third quarter finances for the social-networking giant. Facebook Inc (NASDAQ:FB)’s efforts to increase profits and revenue after the recent fall will be evaluated after the results have been released. Following its Initial Public Offering this May, the share prices for the networking site went down by almost 50 percent. Analysts have also been commenting upon the fuzzy game-plan which the site has, of trying to make the best of the increasing number of mobile users who are now accessing the site through the phones.
Out of the billion users which the site has, Facebook is accessed through the smartphones by about 600 million of them. This has become a serious detrimental force to the site’s major source of revenue, adverts. The site grew as large numbers of people joined the site to stay connected to friends and family. This also made the site very lucrative for advertisers. As far as ad networks go, Facebook has quickly grown into one of the largest online ones. Some trackers also suggest that the site has managed to beat the likes of Google and Yahoo is posting ads on the site. However, with mobile users, the situation gets more complicated. Firstly, mobile profiles do not allow much space for the display of the adverts, and secondly, the advertisers do not pay quite as much for the ads over the phone.
Earnings per share minus items worth eleven cents, is what the analysts have been estimating. This will be the second quarter where the site will have shown no growth at all, after the previous quarter, which was very dismal. The revenue is expected to be close to $1.2 billion, which is a slight increment, with a 26 percent rise, but the sales are still going down for the site.
Analysts are yet to lose hope on Facebook, though. The site, is still growing, according to them, and Facebook is still looking for new ways to adjust to the changes, such as the shift to mobile phones. The company needs to figure out ways of getting long-term revenue sources.
Shares of FB ended higher by 1.70% to $19.32 in Monday’s session.