On Wednesday, Facebook reported its second quarter earnings and they’re off the charts, showing a substantial increase in both sales and number of active users. That last one has us baffled. How could there still be an increase? Isn’t everyone on the planet already registered?
Sales are up by 59% from a year ago for a total of $6.44 billion. The number of users has increased by approximately 15% from a year ago. Profit nearly tripled, reaching more than $2 billion.
What’s driving the social giant’s success? The short answer is mobile ads.
According to Mark Zuckerberg, in the future videos and video ads will play a bigger role in Facebook’s existence, and they won’t be the standard videos you see today. He revealed the social network is working on 350 degree cameras and virtual reality. The company has been focusing on videos for quite some time now, making it easier for users to post and view them. Video ads might also help the company to solve the “ad load” created when there’s a high number of ads on users’ news feed.
Facebook’s success story comes in the same week when Twitter posted disappointing second-quarter earnings. Will Facebook continue to dominate the social platform industry and what will happen to its shares? At iFOREX you can invest in the share price of Facebook, Twitter, Google and other tech companies and always have the opportunity to short or long your position.