Facebook Inc reported earnings for the third quarter of the year in a very positive way, and clearly ended up beating all the estimations made by the analysts in the market. The earnings showed that the analysts and equity firms covering the stock activities of the social media company with a bullish attitude where not bullish about it enough, as the results presented by the giant to the investors on the final reporting day turned out to be a little too much over the positive side. As for how the investor sentiment should be, now that the earnings have been announced, analysts believe that there is a lot more to rely on for positivity coming from the Silicon Valley based company’s side for the upcoming future.
Presently, Facebook business is enjoying quarterly profit coming from the mobile ad business to have made up around 78% of the total profit which shows that the giant is slowly relying more and more on the revenue being generated from online ads. According to the equity firms, the best way to grow that revenue percentage on the whole can be done by monetizing its photo sharing app, Instagram, which is a platform yet to be used for displaying of ads.
Presently, Facebook business is enjoying quarterly profit coming from the mobile ad business to have made up around 78% of the total profit which shows that the giant is slowly relying more and more on the revenue being generated from online ads. According to the equity firms, the best way to grow that revenue percentage on the whole can be done by monetizing its photo sharing app, Instagram, which is a platform yet to be used for displaying of ads.
The fact that Instagram is one of the social media apps which have been gaining users on a massive level on a daily basis makes it all the more interesting for businesses to think of it as a great platform to showcase their products in the most effective of ways. According to the analysts belief, it can also been seen that the social media giant is aware of all the potential Instagram has and how it can help the giant to increase its revenue generation.
Recently the Chief Operating Officer of Facebook business informed the industry that it will be making ads on Instagram available for all the marketers and this will be done in exactly the same way that it gets ads for the social media website. Sheryl Sandberg, the COO, also mentioned in one of the press conferences that the kind of feedback which has so far been received by the marketers is quite impressive and it just opens up more space for the company to roll out similar activities for its other projects as well, which could be of either Whatsapp or Facebook Messenger.
However, news suggests that the networking giant is not looking forward monetizing any of the latter subsidiaries of the company any time soon and this only looking forward to focus on Instagram for now.
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