Thursday, July 24, 2014

Facebook Conquers Mobile

When Facebook users began to migrate from their pc to smartphone and tablet, shareholders were concerned that the ad model would crumble and Facebook would take a hit.  But given their recent quarterly earnings report, Facebook has embraced the mobile platform and uncovered a growing revenue stream. 

"The social network reported that profit more than doubled and revenue topped estimates for the ninth straight quarter."  It is a world of more than just display advertising; rather, sponsored content with video and a targeted approach.  And as CEO Mark Zuckerberg knows so well, this world changes at an ever quickening pace.  He is making new investments in untried products, all to stay relevant for the long haul.  Products like Oculus VR and services like WhatsApp can potentially bring new sources of revenue back to Facebook. 

For the present, Facebook must contend with user satisfaction and usage.  It is harder to find new users to the service and a challenge to keep them active users too.  Constant reinvention that encourages tune-in rather than pushes current users away.  It is the challenge every time an upgrade is released.  Still, Facebook seems up to the challenge and certainly has the financial resources to invest and grow.  It was a great quarter and as some shareholders have speculated, facebook could now be considered undervalued. 

No comments:

Post a Comment