Mobile advertising strategy favored by Facebook to regain Wall Street

Source: Internet
Author: User
Keywords Mobile AD Facebook facebook
"Sohu It News" October 28, Reuters reported that the second quarter of Facebook to win the favor of Wall Street, it now needs to keep this relationship. Facebook's share price has doubled in the past 3 months as more and more investors believe Facebook is making the right mobile advertising strategy. But Wall Street's expectations for Facebook have gone up, which means Facebook will need to surpass Wall Street expectations to maintain its high share price in the third quarter of Wednesday. "Facebook has demonstrated to investors that it can keep up with the growth trend of the previous quarter," said Bob Bacarella, investment company Monetta Fund portfolio manager. From current stock prices, investors generally expect Facebook's performance to exceed Wall Street's expectations. "Mobile advertising business revenue will be the focus of investors." Wall Street analysts expect Facebook's mobile revenues to grow to at least 5 times times the same period a year earlier, with many investing firms "officially" estimated at 760 million-840 million dollars. But there are signs that investors privately want Facebook's mobile advertising business to be more revenue-efficient. "I think Facebook's third-quarter mobile ad revenue should be higher than $850 million trillion, or even more than $900 million," said Ben Schachter, an investment firm Macquarie analyst Ben Chacter. "Facebook has once again won the trust of Wall Street. In the local time of the Friday regular trading, Facebook shares closed at $51.95 trillion, up 96% in the past 3 months. At present, Facebook has a price-to-earnings ratio of about 52 times times. Facebook, along with Google and Twitter, is thought to be the most likely to benefit from the mobile advertising business of internet companies. Facebook's "Information Flow" ads, launched last year, are directly inserted into the messages that users receive, and are ideal for publishing on smaller screens of smartphones. Consumers are increasingly surfing the internet via smartphones. "Facebook listened to investors ' demands for increased mobile advertising revenue," said Michael Pachter, an investment firm Wedbush Nomura analyst Michael Pachet. "While bad news will lead to a fall in Facebook's share price, some investors and analysts say Facebook has room to rise as new revenue schemes are put into effect." Analysts expect Facebook to yield 18 cents per share in the third quarter, with a revenue of $1.91 billion, according to data compiled by Thomson Reuters. In addition to mobile advertising, investors want Facebook management to disclose details of other revenue-generating programs, especially video ads. Facebook has said that big companies, including Adidas, Lexus and Levi's, will be Instagram in the next few weeksAdvertising。 Mark Mahaney, Mark Mahanni Capital market analyst at Royal Bank of Canada, reckons in a recent investment report to investors that Instagram "earns about One-third per user." This means that by 2015, Instagram revenues will reach about $1.7 billion trillion, accounting for 13% of Facebook's revenue. Steve Weinstein, a marketing research firm ITG Investment study analyst Steve Wehnstein, said Facebook's existing advertising improvements-including better precision advertising technology-also helped increase Facebook's revenue. Even a small increase in the advertising rate is a big boost for the Facebook business. I don't think Facebook needs to post more ads, it wants ads that are more interesting to users. Bamboo)
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