Yesterday Facebook posted an overall loss of $59m (£37m), despite announcing a 32% increase in revenue during the third quarter of this year. But it’s not just the profit and loss figures that might be keeping Mark Zuckerberg awake at night – he now has shareholders to keep happy as well.
Having said that, despite losing around 50% of their value since the IPO in May, there was a nearly 10% jump in the Facebook stock price during after hours trading last night following the announcement of the social network’s Q3 revenue. But there is a little more to it that just making more money – it is where that money was made that is important here.
The revenue is up by 7% on the last quarter, but 32% on the figure it posted a year ago. Most of that revenue came from advertising, and more specifically, there was an increase in the proportion that came from mobile devices – a proverbially tough nut to crack. A fear of how Facebook would go about monetizing a network that is seeing more users than ever engage on mobile devices is acknowledged to have contributed to it’s apparently failure on Wall Street.
During the Q3 earnings call, Facebook also revealed that 604 million of its 1.01 billion users access the site using a mobile device. With the issue of getting people who access the site via mobile to spend money and therefore generate greater ad revenues seemingly improving, it will give shareholders confidence that their money was not wasted. But will the value of Facebook stock continue to rise? If I knew the answer to those sort of questions, I’d be a very rich man.
Times alter, still folks have a inclination to adhere to the prior customs and former style.
Will a person’s fault decrease, will have its expanded, numerous matters rationale not experience are not able to have an understanding of.