Facebook (NASDAQ:FB); ad revenues at higher prices

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With the advancement in the trend of broadcasting dollars online, Facebook (NASDAQ:FB) and its huge 1.32 billion costumer base is continuing to be a step ahead of conventional methods. The social media has a huge impact and if it grows more, it will result in more broadcasting earnings and at higher rates.

According to the analyst Doug Anmuth, who rated the threshold price of Facebook (NASDAQ:FB) to be $90, still believes that there is a chance for Facebook (NASDAQ:FB) to gain even more profits. The social networking site, according to analysis, continues to conquer a rough 20% of the total Internet time of the U.S. This figure does not consider the Internet time of Instagram as well as WhatsApp. The former was bought by Facebook (NASDAQ:FB) at the price of $19 billion in stock and cash back in February earlier this year.

Anmuth further explained in a note that advertising trends for Facebook (NASDAQ:FB) will continue to increase and with time it will yield higher profits for ad relevancy.

According to the survey, Facebook (NASDAQ:FB) is the leading social networking site in the U.S. Countless numbers of people use Facebook (NASDAQ:FB) across the globe and the number is increasing by the hour as the need to stay updated with the world overpowers individuals around the globe. People are looking to stay connected across borders and have found a way to do so through Facebook (NASDAQ:FB). Analysis made by the firm ComScore (NASDAQ:SCOR) shows that in August, there were 204.6 million different visitors of Facebook (NASDAQ:FB) – this data includes all devices, not just laptops, or phones. When compared to other social networks, this looked like a rather impressive number; on the other hand, 121.1 million were recorded on Twitter (NYSE:TWTR); 86.1 million on LinkedIn (NYSE:LNKD) and Instagram – also a property of Facebook (NASDAQ:FB) – had 80.7 million. Facebook (NASDAQ:FB), among all the other players in the market, has managed to sit in the top seat, as it is still the most dominant social media site.

Facebook (NASDAQ:FB) has made the biggest impact in the mobile ad market and gained importance among cellular companies. Along with that, it is also considered as a mobile-first company, bringing about 62% of advertising earnings from cellular phones ($1.66 billion). As users have instant access to the internet via smartphones, the market of mobile ad is growing continuously and the number of users is increasing day by day. According to the research made by eMarketer, in 2013 the total mobile broadcasting in the U.S was found to be $9.69 and it is expected to rise even more in 2014. According to an estimate it is expected to rise by 83%, year after year to almost $17.73 billion.

Thomson Reuters surveyed different analysts and they expect that Facebook (NASDAQ:FB) would earn 40 cents on a share on $3.1 billion earnings by the end of the third quarter.

Youssef Squali another analyst noticed that Facebook (NASDAQ:FB) is not only the leading social platform in terms of users and engagement, it is also spreading its dominance in ad dollars. Squali wrote in another note that with the increasing trends of online players as compared to the conventional media channels, Facebook (NASDAQ:FB) will be the leading beneficial platform with Twitter (NYSE:TWTR) following right behind.

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