Saturday, August 16, 2014

Revival of Facebook Mobile Ad Revenue: An Excellent Project Showcase

When Facebook launched its IPO in 2012 under heavy expectations, speculations and rumors from investors, public and corporate world; it never knew the bad treatment it was going to get when the prices were reached to half in a period of 3 months. Keen watchers remained stuck to the movement of its stocks in the market. Either Facebook has remained as a secret planner for earning money without disclosing its strategies in advance, or the financial stalwarts have not been able to judge the weakness or strength of its scrip.

There is no doubt that after the launch of its IPO, Facebook had a bad period of struggle in the market. The projected inflows and earnings were not as per the agenda and even during a period of one year after the launch, Facebook's earning from mobile advertising was not as it had anticipated. The speculations and rumors have been sidelined with the latest press release by Facebook where they declared their earnings for the second quarter of 2014. As per the results, Facebook has achieved to increase its revenue to 67%. Its weakest area of earnings through mobile ads has become now quite a strong piece of the overall revenue by having a contribution of 60%.

With increasing profit margins and its end users base, Facebook has become a top most ranker in terms of ad seller. With these results announced, Facebook shares price had a whooping jump by 5% and the current share price of USD 75.2 is almost double of the initial offering of USD 38 IPO.

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