Facebook’s Mobile Movie Ads Boost Sales Growth Above Projections
Cracking Down Facebook’s Second-Quarter Earnings
Facebook Inc.’s investors are salivating over the revenue potential for the company’s talk businesses, Messenger and WhatsApp, after Chief Executive Officer Mark Zuckerberg said he’d like to stir “a little quicker” to make money from them.
The company has warned that sales growth, fueled primarily by mobile advertising, will slow because it can’t keep loading ads into users’ news feeds on its main social network. Both of Facebook’s talk apps have more than one billion users, however neither contributes significant revenue yet. After the company’s earnings report Wednesday, Wall Street determined these apps are the response to the growth challenge, and Zuckerberg’s comments sent the shares up as much as Four.7 percent in extended trading.
Bloomberg TV’s Emily Chang recaps her interview with Facebook COO Sheryl Sandberg.
Executives spent the bulk of their earnings call with investors fielding questions about the potential for Messenger and WhatsApp. Zuckerberg tempted them further, telling Facebook “should be able to do better” at building a business than popular Asian messaging apps. It was left to Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Wehner to quickly remind everyone that the app businesses were still in experimental phases.
Sensing he might have inflated expectations just a bit too much, Zuckerberg reframed his remarks.
“So there have been a number of questions about Messenger,” he said. “It’s a longer term thing. I actually think in over the next duo of years or few years, the much thicker driver of the business and determinant of how we do is going to be movie, not Messenger.”
Earlier, Facebook reported second-quarter sales that hit analysts’ estimates, climbing forty five percent to $9.Trio billion. Mobile advertising generated eighty seven percent of total ad revenue, an increase from eighty four percent in the same period a year earlier. Net income rose to $Three.9 billion, or $1.32 a share, from $Two.Three billion, or seventy eight cents.
Facebook’s social network, now with Two.01 billion monthly active users, is steadily driving sales at a swifter rhythm than at other technology giants. That consistency funds the company’s efforts in talk applications and virtual reality. To keep up growth, Facebook has been intensely investing in movie.
The sales growth is “indeed based on enhanced engagement” on Facebook and Instagram, Sandberg said in an interview.
“Facebook and Google are taking virtually all the growth in digital advertising — they’re the easiest place to spend your money,” said Brian Wieser, an analyst at Pivotal Research Group.
Facebook shares closed Wednesday at $165.61 in Fresh York, just off the company’s record high of $166 on Monday. The stock has enhanced forty four percent this year.
TV Initiative
While Facebook’s movie advertising business has helped propel sales for the last few quarters, the company is getting into content, too. Facebook has funded TV-like shows and brief movie series for a fresh product set to come out in mid-August, people familiar with the matter have said. The effort will help the company build up a share of the $70 billion television advertising market. It will also kickstart Facebook’s role as a movie platform for episodic viewing, not just the viral movies that already are common, Sandberg said.
With the frequency of ads on the social network holding constant to avoid turning off users, Facebook is relying on Instagram, the photo-sharing application, for more ad inventory. Now with more than seven hundred million users, Instagram has a mature advertising business, built off of Facebook’s, and has been contesting with freshly public Snap Inc., the maker of Snapchat, for youthful audiences.
Facebook acquired WhatsApp for $22 billion, and spun off Messenger from its main application. WhatsApp now has one billion users a day, the company said. Before Wednesday, Zuckerberg hadn’t voiced any urgency about making money from those applications. Both are attempting to generate sales from users’ direct relationships with businesses. Oculus, the company’s virtual reality division, has been working to make the technology popular among consumer audiences, but hasn’t yet seen widespread adoption.
The fresh initiatives helped boost Facebook’s costs thirty three percent to $Four.9 billion in the quarter. The company also enhanced its workforce forty three percent to 20,658 as of June 30.
Observe Next: Violating Down Facebook's Second-Quarter Earnings
Expanded Mission
Zuckerberg also has been talking about the company’s broader role in society, especially as isolationist and nationalist movements spring up around the world. Facebook has been criticized for the spread of extremism and false news on its social network. Zuckerberg, traveling around the U.S. and talking to people from different backgrounds, ha produced a fresh company mission statement: to bring the world closer together.
Observe Next: Violating Down Facebook's Second-Quarter Earnings
In order to get there, Facebook is going to put more emphasis on Facebook Groups, with the objective of adding one billion people to “meaningful” groups, such as those that help people deal with parenting or addiction, from the current one hundred million, Zuckerberg has said. The company has also added Three,000 workers to catch violent and abusive comments and pictures on the network before they cause harm.
Facebook s Mobile Movie Ads Boost Sales Growth Above Projections
Facebook’s Mobile Movie Ads Boost Sales Growth Above Projections
Violating Down Facebook’s Second-Quarter Earnings
Facebook Inc.’s investors are salivating over the revenue potential for the company’s talk businesses, Messenger and WhatsApp, after Chief Executive Officer Mark Zuckerberg said he’d like to stir “a little quicker” to make money from them.
The company has warned that sales growth, fueled primarily by mobile advertising, will slow because it can’t keep loading ads into users’ news feeds on its main social network. Both of Facebook’s talk apps have more than one billion users, tho’ neither contributes significant revenue yet. After the company’s earnings report Wednesday, Wall Street determined these apps are the response to the growth challenge, and Zuckerberg’s comments sent the shares up as much as Four.7 percent in extended trading.
Bloomberg TV’s Emily Chang recaps her interview with Facebook COO Sheryl Sandberg.
Executives spent the bulk of their earnings call with investors fielding questions about the potential for Messenger and WhatsApp. Zuckerberg tempted them further, telling Facebook “should be able to do better” at building a business than popular Asian messaging apps. It was left to Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Wehner to quickly remind everyone that the app businesses were still in experimental phases.
Sensing he might have inflated expectations just a bit too much, Zuckerberg reframed his remarks.
“So there have been a number of questions about Messenger,” he said. “It’s a longer term thing. I actually think in over the next duo of years or few years, the much thicker driver of the business and determinant of how we do is going to be movie, not Messenger.”
Earlier, Facebook reported second-quarter sales that strike analysts’ estimates, climbing forty five percent to $9.Trio billion. Mobile advertising generated eighty seven percent of total ad revenue, an increase from eighty four percent in the same period a year earlier. Net income rose to $Three.9 billion, or $1.32 a share, from $Two.Three billion, or seventy eight cents.
Facebook’s social network, now with Two.01 billion monthly active users, is steadily driving sales at a swifter rhythm than at other technology giants. That consistency funds the company’s efforts in talk applications and virtual reality. To keep up growth, Facebook has been powerfully investing in movie.
The sales growth is “indeed based on enlargened engagement” on Facebook and Instagram, Sandberg said in an interview.
“Facebook and Google are taking virtually all the growth in digital advertising — they’re the easiest place to spend your money,” said Brian Wieser, an analyst at Pivotal Research Group.
Facebook shares closed Wednesday at $165.61 in Fresh York, just off the company’s record high of $166 on Monday. The stock has enlargened forty four percent this year.
TV Initiative
While Facebook’s movie advertising business has helped propel sales for the last few quarters, the company is getting into content, too. Facebook has funded TV-like shows and brief movie series for a fresh product set to come out in mid-August, people familiar with the matter have said. The effort will help the company build up a share of the $70 billion television advertising market. It will also kickstart Facebook’s role as a movie platform for episodic viewing, not just the viral movies that already are common, Sandberg said.
With the frequency of ads on the social network holding stable to avoid turning off users, Facebook is relying on Instagram, the photo-sharing application, for more ad inventory. Now with more than seven hundred million users, Instagram has a mature advertising business, built off of Facebook’s, and has been rivaling with freshly public Snap Inc., the maker of Snapchat, for youthful audiences.
Facebook acquired WhatsApp for $22 billion, and spun off Messenger from its main application. WhatsApp now has one billion users a day, the company said. Before Wednesday, Zuckerberg hadn’t voiced any urgency about making money from those applications. Both are attempting to generate sales from users’ direct relationships with businesses. Oculus, the company’s virtual reality division, has been working to make the technology popular among consumer audiences, but hasn’t yet seen widespread adoption.
The fresh initiatives helped boost Facebook’s costs thirty three percent to $Four.9 billion in the quarter. The company also enlargened its workforce forty three percent to 20,658 as of June 30.
See Next: Cracking Down Facebook's Second-Quarter Earnings
Expanded Mission
Zuckerberg also has been talking about the company’s broader role in society, especially as isolationist and nationalist movements spring up around the world. Facebook has been criticized for the spread of extremism and false news on its social network. Zuckerberg, traveling around the U.S. and talking to people from different backgrounds, ha produced a fresh company mission statement: to bring the world closer together.
Witness Next: Violating Down Facebook's Second-Quarter Earnings
In order to get there, Facebook is going to put more emphasis on Facebook Groups, with the objective of adding one billion people to “meaningful” groups, such as those that help people deal with parenting or addiction, from the current one hundred million, Zuckerberg has said. The company has also added Three,000 workers to catch violent and abusive comments and photos on the network before they cause harm.