What will happen to you on Facebook?

Everyone knows the history of Facebook’s listing, it was the biggest public launch of all time, says Sverrir Sverrisson, an expert at Danish-based global investment bank Saxo Bank. In the first months of trading, the paper lost 24 percent of its $ 38 price at launch, causing great disappointment. It is not far from the truth to find that the estimates of sales and profit published by analysts are not due to each other.

 

There are a number of things an investor needs to consider. Of course, the evolution of the monthly number of active users (MAU) is extremely important for Facebook. As growth has slowed somewhat in Europe and the US, it will be interesting to see if Facebook has managed to grow in the rest of the world. By the end of the quarter, the number of active users is expected to be slightly less than 1 billion. In the third quarter of this year, however, Facebook can already be expected to break the magical one billion mark.

However, the existence of users is not enough. Facebook needs to make money from users. Therefore, the investor must interpret income growth as a significant variable. Analysts expect sales of between $ 1 million and $ 062 million. As a result, revenue per active user increases. If, on the other hand, this indicator has fallen from the figure in the report published for public issue, there is a problem.

There is also a third topic about Facebook: what strategy can be used to make money for users when they switch from desktop to mobile. In its earnings report, Facebook needs to make sure the company wants to generate revenue for its mobile apps. Based on current ideas, it will be quite difficult for Facebook to generate revenue for mobile applications, so the mobile segment is unlikely to contribute to sales revenue this quarter.

Facebook has been very active in the last quarter, acquiring Face.com face recognition company, Karma mobile gifting app, Glancee location-based app and famous Instagram. While we won’t be aware of the specific details of how Facebook will integrate these acquired companies into its social network, it will in any case clearly do its best to become a one-stop server on its social network.

 

Source: HOC