What Facebook Inc (FB) Earnings Propose For The Future

The social media company is expected to grow even more now that it has opened Instagram for ads.

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.

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.

Facebook Inc Server Goes Down Once Again

The social media giant faced a server breakdown on Monday which was criticized by analysts all over the world.

Facebook Inc. was recently seen facing one of the many other server breakdowns that it has had in the past few months, which has also made the analysts wonder as to what the tech giant is really doing with its security system. These breakdowns, occasionally, are considered as not a very big deal but the fact that the downgrade that was seen on Monday was the tech giant’s third in a period of one month, and was not taken quite that well by the industry pundits. Analysts have been discussing how the frequency of these events has increased over the period and it looks like the social media giant could be messing up with its system that has left the investors confused. Facebook business has been working fine on the stock index for the past four weeks but there have been problems with some technicalities, which have brought the firm under the critical gaze of the analysts. All the recent events took place in the month of September only and all the issues that were raised came to be revolving around the same problem of users failing to log into their Facebook accounts due to the server being down. When the users tried to log in, they were shown a page with a message saying ‘service unavailable’ which showed that site was down. Following these server breakdowns, analysts who were not informed of the core cause of the issue concluded that the social media platform might be going through some major changes due to which the breakdowns took place. This could be a drawback on the company’s part, which was causing the networking site to be unbelievably slow for users around the world. Even though Facebook software team did not give in any details as to why the break down took place, a spokesperson from the site was seen discussing with the press about how the media site experienced the massive issue as it was going through some configuration problem. On the other hand, representatives apologized to the users from the networking giant in which the firm was also seen to assure the users about how the problems that have been occurring so frequently will be seen to, with the aim of putting an end to all the issues in the future. The decline in service caused frustration among people and #facebookdown hashtags circulated over the social media. Consequently, Facebook faced a loss in revenues.