Knowing is Owning

Thursday, 27 July 2017

Facebook Shares hit $9.3B With 2B monthly users

Facebook reported its 2017 second quarter earnings today. CEO Mark Zuckerberg has said that Facebook is transitioning into a “video-first” platform, and on Wednesday he gave more details about this plan during the company’s second quarter earnings call. “Over the next two or three years,” he said, video is “going to be much bigger driver of the business [...] than the trajectory of what we’re doing on Messenger and WhatsApp.”
There were also many questions about Facebook’s plan to monetize Messenger.

“We will be slow and deliberate,” Facebook COO Sheryl Sandberg said. “We’re always looking at the long run. We do not manage this company quarter to quarter.”
The main focus is Facebook’s long-term plans to “monetize” Messenger and Whatsapp: The company hopes to eventually make advertising a major part of those services, which respectively see two billion messages sent between people and businesses every month and one billion active users a day.
Facebook now has 2 billion monthly users. That’s up 17 percent year-over-year. The company has 1.32 billion daily active users, also up 17 percent. Both numbers were in line with analyst expectations.

READ: How to download Facebook videos On Android

Facebook has great drive to push users toward video. It has nearly run out of space for advertisements in news feeds, so it’s turning instead to ad growth in Messenger, Whatsapp, Instagram stories (because Facebook owns Instagram), and video. Plus there’s the fact that video content encourages users to linger more on the site, hence reducing bounce rate; a March 2017 biometric from Facebook found that people look at video five times longer than static content.

As for Facebook’s earnings, they are solid and even outperformed analysts’ expectations. Shareholders were earning 78 cents per share at this time last year; that was projected to increase to $1.12, but instead moved to $1.32. The company’s second quarter earnings in 2016 were $6.4 billion, and this year they were $9.3 billion.
Two years from now, you’ll be using Facebook in a totally different way. Remember when statuses were relevant? The traditional news feed could be on a similar path to oblivion. One thing’s for sure: Video is going to shoot up to the pinnacle of cultural relevance. Get ready.

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