Facebook Sees 52 Percent Increase in First Quarter
On July 13, 2015, Facebook became the fastest company in the Standard & Poor’s 500 Index to reach a market cap of Dollars 250 billion.
Facebook’s supremacy in the mobile ads world is nothing new. Menlo Park has cemented its status as a mobile juggernaut with $4.2 billion in ad revenue. Mobile advertising revenue represented about 82 percent of advertising revenue for the first quarter of 2016.
Net income came in at $1.51 billion, up from $512 million the same period a year ago, while revenues increased to $5.38 billion from $3.54 billion. But many metrics stood out in the company’s report. Call it a tale of two social networks.
The figures sent Facebook shares soaring.
Apple may have fallen on hard times this week but over at Facebook, the sky’s the limit.
Facebook opened up Instagram, its photo-sharing app, to advertisers previous year and the application is in the early innings of a growth cycle.
As in previous quarters, Facebook attributed its success to its mobile advertising strength. Revenue from payments and fees for the quarter was $181 million, a 20 percent decrease year-to-year. Analyst had estimated 62 cents per share for the quarter.
CEO Zuckerberg is also investing in other, more ambitious bets, including virtual reality and artificial intelligence.
The new class of shares should allow Mark Zuckerberg to give away his fortune earlier than planned and still allow him to remian in control of Facebook. The increase in mobile phone users and expensive ads sold on mobiles puts the social website in a win-win situation.
Mark Zuckerberg’s social media company continued its winning streak as other Silicon Valley companies floundered.
Finally, the company did not disclose how its number break down over each individual service, like Facebook, Messenger, Instagram or Whatsapp. However, one area of concern in this segment was Rest of the World region where average revenue per user fell to $0.91 from $1.10 in last quarter as well as from $0.94 in Q3. Surprise: users kept coming back, obsessively trying the app again or simply using the Facebook website instead, The Information revealed.
The earnings per share announced also exceeded expectations, with the company delivering $0.77 versus the $0.62 expected. State of the State Ks
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