Facebook stocks jump and it gets a higher profit and this profit is gained through sales of mobile video ads and this advertising grew its revenue much more that than it’s superior opponent Google.
In a conference, the company said that the expenses of the year 2017 would less than forecast. The company saying that instead of 40 to 50 percent the expenses would be 40 to 45 percent. After the announcement, the stock jumped 4 percent which is the record high.
Let’s have a look on the to-matrix of the Facebook revenue
- EPS: $1.13 expected and it is $1.32, according to Thomson Reuters
- Revenue $9.2 billion expected and it is $9.32 billion, according to Thomson Reuters
- Mobile as revenue: $7.68 billion expected and it is $8 billion, according to StreetAccount
- Monthly users (MAUs): 1.98 expected and it is 2.01 billion, according to StreetAccount
- Capital expenditures: $1.73 expected and it is $1.44 billion, according to StreetAccount
Facebook is now adding more display ads and video to the mobile version of its app and this will help more consumer’s access to the internet through the help of their smartphones. And another good news is that the company is soon adding short TV-like programming.
Facebook Chief Operating Officer Sheryl Sandberg told CNBC in an interview, “We are making some early investments to create episodic content.”
The Instagram service of the company is also renovated last year to win the challenge from smaller rival group Snap.
Sandberg said that now more than 15 million businesses have the presence on Instagram, in accumulation to the 70 million who have Pages on Facebook.
She further said: “Our goal is to be the platform for content creators.”
Most of the Facebook revenue is earned by the mobile ad sales and it reached $8 billion and this is the jump of 53 percent and more than the expectation of the analysts.
President of NinthDecimal David Staas said: “As content consumption changes, online marketers are saying, I want to reach consumers wherever they are, whatever device they’re using.”
Sandberg told CNBC: “We remain very solidly in investment mode.”