Wednesday, October 24, 2012

Facebook Inc (NASDAQ:FB)’s mobile strategy paying off, Shares Rebound Back Above 50-day MA

Facebook Inc(NASDAQ:FB)’s third quarter revenues showed the doubting world of analysts and investors that the company is taking its business seriously in terms of getting more revenues, especially from mobile advertising.

The company’s third-quarter advertising revenue increased by 36 percent year-over-year to $1.09 billion, accounting for 87 percent of the company’s $1.26 billion in overall Q3 revenue. That overall figure in turn grew 32 percent from the prior year and slightly beat analysts’ estimates.

Considering the fact that mobile advertising revenues were next to nothing in the first quarter and then rose to about $40 million in the second quarter, the$150 million that it has in its kitty at the end of the third quarter is a major achievement.

Has FB Rebound And Ready To Hit $25 This Week? Find Out Here

As founder and chief executive Mark Zuckerberg pointed out in an analyst’s conference call, the company's mobile business has been much misunderstood.

The company started its mobile ads business only in Aril and from then to its contributing 1 percent of total revenues is a big jump for the company.

At last quarter's earnings call the company had said that it generated about $1 million daily in ads from its News Feeds. Now that number has risen to $4 million daily. About three-fourths of those revenues come from ads shown in the mobile News Feeds.

Throwing light on some of its ad strategy Zuckerberg said that the company was building a lot more integrated ad products now.

“We told every product team they’re responsible for the ad experience in their product,” Zuckerberg continued. “What we’re seeing is across each consumer product, a more tailored ad experience.”

Shares of FB soared 14.36% to $22.30 in the pre-open session, well above its 50day moving average price of $20.45.

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer