The biggest social media in the world is doing great from the financial point of view. They are never ceasing to expand, so Wall Street cannot do more but anticipate great things for Facebook, especially after looking at the numbers released at the end of the second quarter.
It seems that about 75 percent of its money from advertising comes from mobile users. This is why it is of utmost importance for the California based company to extend its predominance on mobile services.
“Our thesis is that while people are uniformly positive on the company and its prospects, we think even short term the company will do better than people realize,” said analyst Robert Peck, who works for SunTrust Robinson Humphrey.
Facebook shares were reported to have increased by 22 percent. On Tuesday, they closed at $ 95.29.
Moreover, Wall Street reports that the shares that have increased their value by 47 cents each will add up to a total of $ 3.99 billion. This basically means that sales will go up by 37 percent compared to last year.
While these are only estimates, it should be noted that Facebook somehow manages to always surpass the ones Wall Street makes. The only exception was last quarter, when it missed by a very slim percentage.
Investors too expect more than that, according to Sanford Bernstein analyst Carlos Kirjner, who stated that Facebook should provide a “significant top line beat without material margin disappointments.”
Instagram, Facebook’s photo-video sharing application is expected to bring $595 million in mobile ad revenue in 2015 and the expectations are even higher for the years to come, according to eMarketer. This is mainly due to increasing demand for Instagram ads in retail, fashion, autos or entertainment.
Video ads are also bringing a considerable amount of money to the company, even if they cannot yet compete with Google’s YouTube. However, last quarter, representatives of Facebook said that they got about 4 billion views a day. It was reported the company is now dealing with important advertisers and agencies.
The company has not discussed details of their earnings with the press and they are unlikely to do so in the close future.
Image Source: mobilemarketingwatch