Will We See Next Wave Of Growth For Facebook Inc (NASDAQ:FB)
In the Q2, Facebook Inc (NASDAQ:FB) has been blazing trails in its mobile segment and investors are definitely agape in wonder. Instagram has given the company the support and boost that it needed and Deutsche Bank analysts have been hard at work analyzing how this is going to take the company forward.
The Newsfeed story
The analysts have detailed that in
the U.S, Facebook Inc (NASDAQ:FB) sold mobile Newsfeed advertisements in the range of $3-$6. Similarly, the company sold newsfeed ads in Western Europe at on-par rates. In the Q1, the company sold 6.4 trillion advertisements which is truly an impressive number.
The prediction is that Instagram will be one of the primary growth factors for the company and will complement its core revenue that is coming from the mobile segment. Currently, Instagram has a user-base of approximately 150M which increases at the rate of 50M on a
half-yearly basis. Another fact that has emerged from the analysis is that the Instagram users are more active online than Facebook Inc (NASDAQ:FB) users are.
From the viewpoint of growth, analysts project that the over the next few years the monthly active user base is expected to rise phenomenally. This is because the expectation is that over 2B smartphone users will be added across the world. It is expected that there will be a 155 rise in the smartphones market in the U.K and US and the emerging markets will show a 50% growth in 2014. This trend will dip gradually after that period.
In Monday’s trading session, Facebook Inc (NASDAQ:FB) dropped by 1.97%. The company’s shares opened at a price of $50.14, climbed to an intraday high of $51.60 and dropped to a close of $50.23. Approximately 0.100 million shares were traded on Monday while an average volume of 71.68 million shares were traded over 30 days.